Business for personal living expenses

Reference no: EM13121729

Mac is the owner of Maid in Arizona Cleaning Service (MACS). This year, the company had gross income of $300,000 and operating expenses of $195,000. In July, MACS sold a capital asset that had been held by the business for two years for a $15,000 loss. During the year, Mac withdrew $93,000 from the business for his personal living expenses. Assuming MACS is a sole proprietorship, how do these transactions affect Mac's taxable income for the year?

Reference no: EM13121729

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