Jamari peters (social security number 123-45-6789) conducts a business with the following results in 2019: revenue $20,000 depreciation on car 3,960 operating expenses of car 3,100 rent 6,000 wages 8,200 amortization of intangibles 680 jamari estimates that due to a depressed real estate market, the value of land owned by the business declined by $5,200.calculate the effect of jamari’s business on his agi.

AGI will be reduced by $1,940

Explanation:

given data

Revenue  = $20,000

Depreciation on car  = 3,960

Operating expenses of car  = 3,100

Rent  = 6,000

Wages  =  8,200

Amortization of intangibles  = 680

solution

we know here Total Expenses are

Total Expenses = Depreciation on car+ Operating expenses of car + Rent + Wages + Amortization of intangibles     1

put here value

Total Expenses = 3,960 + 3,100  + 6,000 +  8,200 + 680

Total Expenses =  21940

so

Net Income is = Revenue - Total Expenses

Net Income is = $21940 - $20,000

Net Income is = - $1940

so AGI will be reduced by $1,940

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101