MOFAREH A asked:
Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.
2.1. Tanya’s accounting profit is:
A. -$25,000
B. $200,000
C. $75,000
D. $175,000
$400,000(revenue)
-200,000(cost)
-25000(expenses)
profit=$175,000 (D)
disregard the $100,000.
d.175,000.00 gross income; deduct28%fica 14% for SS up to I think 75,000. Don’t forget those pesty little state and local business taxes and TA TA!!!!!!! Shes making about the same as she was at the advertising agency without the perks!!!!!!!
I’m sure I forgot some of those little 1% to 3% taxes that they slide in there to “make your day”.