Albie Operates an Illegal Drug-Running Business and Has the Following

Essay

Albie operates an illegal drug-running business and has the following items of income and expense. What is Albie's adjusted gross income from this operation? $\begin{array}{lr}\text { Income }&\$800,000\\\text { Expenses: }\\\text { Rent } & 24,000 \\\text { Utilities } & 9,000 \\\text { Bribes to police } & 55,000 \\\text { Medical expense } & 5,000 \\\text { Legal fees } & 25,000 \\\text { Depreciation } & 30,000 \\\text { Illegal kickbacks } & 30,000 \\\text { Cost of goods sold } & 300,000\end{array}$