Jordan is the sole proprietor of Adams Company that reported net income of $57,000 for the year.During the year he withdrew $11,000 from the business for personal use.Jordan is in the 25% marginal tax bracket.How much income from the above must Jordan include in his taxable income for the year?
A)$68,000
B)$57,000
C)$14,250
D)$11,000

Question

Quizplus · Accepted Answer

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

Jordan Is the Sole Proprietor of Adams Company That Reported