Terry and Jim are both involved in operating illegal businesses.Terry operates a gambling business and Jim operates a drug running business.Both businesses have gross revenues of $500,000.The businesses incur the following expenses.
A)Neither Terry nor Jim can deduct any of the above items in calculating the business profit.
B)Terry should report profit from his business of $250,000.
C)Jim should report profit from his business of $500,000.
D)Jim should report profit from his business of $250,000.
E)None of the above.

Question

Terry and Jim are both involved in operating illegal businesses.Terry operates a gambling business and Jim operates a drug running business.Both businesses have gross revenues of $500,000.The businesses incur the following expenses.  
A)Neither Terry nor Jim can deduct any of the above items in calculating the business profit. 
B)Terry should report profit from his business of $250,000. 
C)Jim should report profit from his business of $500,000. 
D)Jim should report profit from his business of $250,000. 
E)None of the above.

Quizplus · Accepted Answer

The Answer of Terry and Jim are both involved in operating illegal businesses.Terry operates a gambling business and Jim operates a drug running business.Both businesses have gross revenues of $500,000.The businesses incur the following expenses.  
A)Neither Terry nor Jim can deduct any of the above items in calculating the business profit. 
B)Terry should report profit from his business of $250,000. 
C)Jim should report profit from his business of $500,000. 
D)Jim should report profit from his business of $250,000. 
E)None of the above.

Terry and Jim Are Both Involved in Operating Illegal Businesses