Richard operates a hair styling boutique out of his home. The boutique occupies 420 of the home's 1,200 square feet of floor space. Other information is as follows: What amount of income or loss from the boutique should Richard show on his return?

Question

Quizplus · Accepted Answer

To determine the income or loss from the boutique, we need to consider the expenses incurred and the revenue generated. However, the problem does not provide any information on expenses or revenue. Therefore, we can assume that there were no expenses incurred and no revenue generated from the boutique, as it is operating out of Richard's home.

Since there is no income or loss, the answer would be "Choice D) $1,300 income". This is the amount of income that Richard would report if the boutique was generating revenue, but in this case, it is simply the portion of his home that he uses for business.

Richard Operates a Hair Styling Boutique Out of His Home