Charles is a single person,age 35,with no dependents.In 2019,Charles has gross income of $75,000 from his sole proprietorship.Charles also incurs $80,000 of deductible business expenses in connection with his proprietorship.He has interest and dividend income of $22,000.Charles has $7,000 of itemized deductions.Charles's taxable income is
A)$4,800.
B)$10,000.
C)$17,000.
D)none of the above.

Question

Quizplus · Accepted Answer

Charles's taxable income is $4,800. This is calculated by subtracting his business expenses ($80,000) from his gross income ($75,000), and then subtracting his itemized deductions ($7,000) from the resulting amount.

Charles Is a Single Person,age 35,with No Dependents