ACCT553

Week 2 Homework
(TCO G)
_________________________________________________________

Please provide a response for each section in the space provided below.
When finished, submit to the Dropbox.

In Week 2, we discuss and define gross income from business activities and the associated
trade or business deductions available to offset gross income from business activities. To
further drive those points home, your assignment this week is to interview a business owner
(perhaps your boss or a friend or family member who has his or her own business) and provide
the following information obtained from your interview.

1. Provide the name and contact info of the person interviewed, including his or her position and/or
ownership in the business.

Kimi Brown Ellen kellen@benfordbrown.com

Partner

2. Provide the name of the business or sole proprietorship.

Benford Brown and Associates

LLC

3. What is the main source of revenue (gross income) in this business? (Gross income might be
from the sale of goods, performance of services, use of property, etc.)

Audit Services

4. What IRC Code § provides for the inclusion of this source of revenue into gross income?

61

5. What are the three most significant deductions claimed by this business? (The deductions might
include payroll, materials, rent, etc.)
 Salaries(Payroll)
Occupancy(RENT)
Professional development(Training)

6. What IRC Code § provides for the deductibility of trade or business expenses?

62

7. Can you think of any deductions the business owner might be missing?

Business expenses and don’t get reimbursing. Mileage to various clients.

*Do not provide actual dollar amounts; we are testing the theory here.