Question

You are provided with the following amounts for Sarah Feeley for the current year: • Net employment income = $5,800 • Business A: Gross income = $23,000 • Business B: Gross income = $114,000 • Business A: Expenses (for income tax purposes) = $39,000 • Business B: Expenses (for income tax purposes) = $35,000 • Interest income = $1,400 • Taxable amount of dividends = $2,600 Based on the above, the total amount reported pursuant to ITA paragraph 3(a) in the computation of Sarah Feeley's net income is: Choose the correct answer. O A. $88,800 B. $9,800 O c. $72,800 OD. $196,800

My answer is wrong.

Answer 1

Particulars	Amount	Amount
Net employment Income		$           5,800
Business A Income	$           23,000
Less:Business A Expense Restricted to actual income	$           23,000	$                   -
Business B Income	$        114,000
Less:Business B Expense	$           35,000	$        79,000
Intrest Income		$           1,400
Dividend Taxable		$           2,600
Total Amount to be reported		$        88,800