Question

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

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.
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