Question

Patricia professional gambler had following income expenses in her business:

Gambling Winning---- $275000

Expenses

Fees paid for illegal information---$18000
travel costs------$8000
office expenses ------ $ 5000
supplies------$3000
Business long dist. phone charge--- $1000

Tickets for illegal parking ---- $900

how much net income Patricia reported from the business

A. $0
b. $239100
c. $240000
d. 258000

Answer 1

258,000

Answer 2

[AI-generated answer — Explain Bot]

To calculate the net income Patricia reported from her business, we need to subtract her expenses from her gambling winnings.

First, let's add up all the expenses:
Fees paid for illegal information: $18,000
Travel costs: $8,000
Office expenses: $5,000
Supplies: $3,000
Business long-distance phone charge: $1,000
Tickets for illegal parking: $900

Total Expenses: $18,000 + $8,000 + $5,000 + $3,000 + $1,000 + $900 = $36,900

Now, we can calculate the net income by subtracting the total expenses from the gambling winnings:
Net Income = Gambling Winnings - Total Expenses
Net Income = $275,000 - $36,900

Net Income = $238,100

Therefore, Patricia reported a net income of $238,100 from her business.

The correct option is:
b. $239,100