1.
Blythe, a real estate broker, had the following income and expenses in her business. How much
net income must Blythe report from this business? a. $160.000 b. $158.500 c. $134.000 d.
$104.000
Solution
Solution-
c. 134,000
Calculation-
Net income must Blythe report from this business = Commissions income - Referrals ffes paid to
brokers (not illegal under state law) - Travel and transportation - Supplies - Office and phone
Net income must Blythe report from this business = $160,000 - $11,000 - $6,000 - $5,000 -
$4,000
Net income must Blythe report from this business = $134,000