On 12/31/X4, Zoom, LLC, reported a $55,500 loss on its books. The items included in the loss computation were $27,000 in sales revenue, $12,000 in qualified dividends, $19,000 in cost of goods sold, $47,000 in charitable contributions, $17,000 in employee wages, and $11,500 of rent expense. How much ordinary business income (loss) will Zoom report on its X4 return

Question

Business

Kelly Velasquez

13 December, 23:48

On 12/31/X4, Zoom, LLC, reported a $55,500 loss on its books. The items included in the loss computation were $27,000 in sales revenue, $12,000 in qualified dividends, $19,000 in cost of goods sold, $47,000 in charitable contributions, $17,000 in employee wages, and $11,500 of rent expense. How much ordinary business income (loss) will Zoom report on its X4 return

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Lennon Chen · Answer 1

Answer:Ordinary Business income loss = -$20,500.

Explanation:

Ordinary business Expenses are the expenses generally accepted according to the industry standards associated with running of a business.

Here, the ordinary business expenses for Zoom include

cost of good sold = $19,-000

employee wages = $17,000

rent expense = $11,500 and therefore will be deducted from its sales revenue.

charitable contributions and qualified dividends, do not cut across all industries and so are not classified under Ordinary Buisness expences.

Ordinary Business income loss = Sales revenue - cost of good sold, - employee wages - rent expense.

$27,000 - $19,000-$'17,000-$11,500 = - $20,500. to be reported on its X4 return