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Question: lou is the ownermanager of cannabis cafe in firestone colorado...

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Lou is the owner/manager of Cannabis Cafe in Firestone, Colorado, where marijuana has been legalized fr recreational use. In his first year in business. Lou has gross receipts from the sale of marijuana of $100,000, cost of goods sold of $50,000, and the following business expenses: rent $15,000, insurance $5000, advertising $2500, and supplies $1500. What is the net income from this business that must be included in Lou's income on his tax return?

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