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Jessica Sampson is running a small consultancy business. For the...

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Jessica Sampson is running a small consultancy business. For the...

Jessica Sampson is running a small consultancy business. For the current year, she had the following transactions:

  • She collected fees from clients of $125,000
  • She had debtors at the start of the tax year of $10,000
  • She has debtors of $45,000 at the end of the tax year
  • During the year she paid expenses of $77,000 and has $12,000 in accounts payable at year end.

Jessica is currently operating on a cash basis.

Jessica's taxable income for the current year is:

Select one:

$71,000

None of these

$83,000

$48,000

$125,000

Answer & Explanation

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Answered by Lennah on coursehero.com

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Step-by-step explanation

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