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 24% 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

As a sole proprietor, Jordan must report the entire net income of the business, $57,000, on his personal tax return. Withdrawals for personal use do not affect the taxable income calculation.

Jordan Is the Sole Proprietor of Adams Company That Reported