To work this out, we have to reverse the steps:
After the July discount of 50%, the price of the jeans is $25.50
Thus, the original price before this discount was 2 * $22.50 = $45
In June, the cost was decreased by 25%.
45 ------------------75%
x --------------------100 %
45: x = 75: 100
45 * 100 = 75 x
4,500 = 75 x
x = 4,500: 75
x = $60
Finally, in May the jeans were priced at 250% of their wholesale cost.
60 ----------------- 250%
x -------------------100 %
60: x = 250: 100
6,000 = 250x
x = 6,000: 250
x = $24
Conclusion: The wholesale cost of the jeans was $24.
Answer:
$5,000 Schedule A (Itemized Deductions)
Explanation:
Solution
Recall that:
George's total income amounts to =$5000
Property taxes equal =$3000
Operating costs are =$1500
Depreciation amounts to =$800
Now
Typically, according to the IRS guidelines, expenses incurred from a hobby are only allowable to the extent of the income generated by that hobby. Since a hobby is for personal enjoyment rather than profit, it cannot be classified as business profit and loss
Thus, George's deductible expense for the year totals $5,000 and should be reported on Schedule A (Itemized Deductions).
