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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
117. LO6 Bonnie opens a computer sales and repair service during the current year. Her records for the year show:
Â
|
 |
 Sales Made |
Cash Received |
Liability Incurred |
 Cash Paid |
|
Repair revenue |
$30,000 |
$22,000 |
 |
 |
|
Computer sales |
26,000 |
18,000 |
 |
 |
|
Computer purchases |
 |
 |
$55,000 |
$27,500 |
|
Employee wages |
 |
 |
12,000 |
10,000 |
|
Supplies, utilities, etc. |
 |
 |
9,000 |
6,000 |
Bonnie has computers on hand on December 31 that cost $40,000 and have a retail selling price of $65,000.
Bonnie needs help figuring her taxable income. Is more than one income figure possible? If so, explain why, and compute taxable income under the various methods.
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