Q: 6
Baum, an unmarried optometrist and sole proprietor of Optics, buys and maintains a supply of
eyeglasses and frames to sell in the ordinary course of business. In 1999, Optics had $350,000 in
gross business receipts and its year-end inventory was not subject to the uniform capitalization rules.
Baum's 1999 adjusted gross income was $90,000 and Baum qualified to itemize deductions. During
1999, Baum recorded the following information:
Business expenses:
What amount should Baum report as 1999 net earnings from self-employment?
What amount should Baum report as 1999 net earnings from self-employment?Options
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