Deazia is the sole proprietor of Baldwin Hair Salon 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?

Question

Quizplus · Accepted Answer

As a sole proprietor, Deazia must report the entire net income of the business, $44,000, on her personal tax return. Withdrawals for personal use do not affect the taxable income calculation.

Deazia Is the Sole Proprietor of Baldwin Hair Salon That