How much taxable income should each of the following
a. Kimo builds custom surfboards. During the current year,
his total revenues are $90,000, and he incurs $30,000 in expenses. Included in
the $30,000 is a $10,000 payment to Kimos five-year-old son for services as an
b. Manu gives hula lessons at a local bar. During the
current year, she receives $9,000 in salary and $8,000 in tips. In addition,
she engages in illegal behavior, for which she receives $10,000.