Charles is a single person,age 35,with no dependents.In 2014,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 no itemized deductions.Charles's taxable income is
A)$6,850.
B)$10,800.
C)$13,050.
D)$17,000.

Question

Quizplus · Accepted Answer

Charles's taxable income is $6,850. This is calculated by subtracting his business expenses ($80,000) from his gross income ($75,000) and then adding his interest and dividend income ($22,000).

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