Deazia is the sole proprietor of Baldwin Company that reported net income of $44,000 for the year.During the year she withdrew $20,000 from the business for personal use.How much income from the above must Deazia include in her taxable income for the year?
A)$20,000
B)$24,000
C)$44,000
D)$64,000

Question

Quizplus · Accepted Answer

A sole proprietor is taxed on the entire net income for the year even though she did not withdraw all of it from the business.

Deazia Is the Sole Proprietor of Baldwin Company That Reported