Jadon Johnson also received Social Security benefits of $15,000 in…

Question Answered step-by-step Jadon Johnson also received Social Security benefits of $15,000 in… Jadon Johnson also received Social Security benefits of $15,000 in 2021. Jadon Johnson owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 2 Pine Ave, Long Beach, CA 90802. Its income and associated expenses for the year ending December 31, 2021, are the following:                         Gross income$    570,000Less: Cost of Goods Sold(372,000)        Gross profit198,000Interest expense(7,800)Depreciation expense?Office expense(54,000)Supplies expense(2,100)Meals expense(4,500)Entertainment expense(1,900)Utilities expense(3,700)Wages(70,000)FICA taxes expense(7,963)        Total expense(?)Net income/(loss)$     ?            On January 1, 2021, Story Books purchased and place in service a new delivery van for $45,000. The van’s weight does not exceed 6,000 pounds. Furthermore, it purchased bookcases (7-year property) for $30,000, and computers (5-year property) for $11,000 on March 1, 2021. Assume Story Books does not have any depreciable assets other than the new assets placed in service for 2021. It elected to use MACRS. Story Books elected out of bonus depreciation and elected not to claim section 179. The business activity qualifies for the QBI deduction. Accounting Business Financial Accounting ACCT 321 Share QuestionEmailCopy link Comments (0)