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Kim's Sole Proprietorship Consists of a Bakery and Retail Food

Question 75

Multiple Choice

Kim's sole proprietorship consists of a bakery and retail food sales. The bakery's DPGR is $700,000, but after CGS, direct expenses, and a ratable portion of indirect expenses are deducted, QPAI is $100,000. W-2 wages related to DPGR are significant. The retail food sales have a loss of $900,000. If Kim files a joint return and her modified AGI is $119,500, what is her allowable DPAD, if any, for 2016?


A) None
B) $6,000
C) $7,170
D) $9,000
E) Some other amount

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