Laura is self-employed. She received a Form 1099-MISC from one of the firms for which she performed services, reporting $24,600 in non-employee compensation. The other firm for which she worked on a contractual basis did not send her any documentation reporting the $400 they paid her. Without taking her expenses into account, how much income must Laura report from self-employment activities?

a. $25,000

b. $24,600

c. $400

d. $0

correct option is a. $25,000

Explanation:

given data

Form 1099-MISC = $24,600

other firm = $400

solution

we get here Laura income report under Self employed that is express as

Laura income report under Self employed = total income of (Form 1099-MISC + other firm) ... 1

here we Form 1099 MISC receipt so her income will be treat as self employed income

so put here value we get

Laura income report under Self employed = $24,600 + $400

Laura income report under Self employed = $25000

so correct option is a. $25,000