Trina expects to see the 2022 numbers before completing the deal and says the gas station expects to tally up annual revenues of $400,000. The expenses, with the business owners working full-time, are ballparked at 42% of revenues. In 2021, the revenues totaled $425,400 and expenses were $179,100. For 2023, Hal and Trina have discussed possibly hiring a part-time employee which would allow Simi and Hal to work fewer hours. However, this would push expenses up to about 54% of revenues. Simi is wondering if she should urge her aunt to hire the part-time help, as it would allow her to continue her painting business.

Trina expects to see the 2022 numbers before completing the deal and says the gas station expects to tally up annual revenues of $400,000. The expenses, with the business owners working full-time, are ballparked at 42% of revenues. In 2021, the revenues totaled $425,400 and expenses were $179,100. For 2023, Hal and Trina have discussed possibly hiring a part-time employee which would allow Simi and Hal to work fewer hours. However, this would push expenses up to about 54% of revenues. Simi is wondering if she should urge her aunt to hire the part-time help, as it would allow her to continue her painting business.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter9: Deductions: Employee And Self- Employed-related Expenses

Section: Chapter Questions

Problem 49P

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