Jordan (single, age 30), a real estate broker (self-employed), had the following income and expenses:

Commission income

180,000

Medical insurance premium paid for his staff

10,000

Office staff salary expense

40,000

Medical insurance premium paid for himself

7,000

Office rental expense

30,000

Unreimbursed medical expenses paid for himself

5,000

Which of the following statement is correct?

A. Jordan will report $93,000 as his business income (from Schedule C) and his AGI is $88,000.
B. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is 93,000.
C. Jordan will report $110,000 as his business income (from Schedule C) and his AGI is $95,870.
D. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $80,935.
E. Jordan will report $100,000 as his business income (from Schedule C) and his AGI is $85,935.

Given:

Commission income  = $180,000

Medical insurance =  $10,000

Salary expense  = $40,000

Medical insurance premium paid for himself  = $7,000

Office rental expense  = $30,000

Medical expenses paid for himself  = 5,000

Computation of business income:

Business income = Total revenue - Total expenses

Business income = $180,000 - ($10,000 - $40,000 - $30,000)

Business income = $180,000 - $80,000

Business income = $100,000

Note: Self-incurred expenses are not included in business expenses.

Computation of AGI:

AGI = Business income - Deduction from schedule c

AGI = $100,000 - Medical insurance premium paid for himself  

AGI = $100,000 - $7,000

AGI = $93,000

Therefore, option "B" is the correct answer to the following question.

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )