Question

Martin operates a DVD store. His records indicate that he had sales of $87,000. Customers returned $2,000 worth of DVDs because of various defects. His cost of goods sold was $25,000. What is Martin's Schedule C gross income

Answer 1

$60,000

Step-by-step explanation:

The computation of the gross income is shown below:

= Sales - returned goods - costs of goods sold

= $87,000 - $2,000 - $25,000

= $60,000

Simply we deduct the returned goods and costs of goods sold from the sales amount so that the accurate amount can come. Hence, we consider all the items which are given in the question