Zeron Inc. generated $1,349,600 ordinary income from operations this year. It also recognized $29,200 recaptured ordinary income, $21,000 net Section 1231 gain, and $14,900 net capital loss on the sale of assets. Compute Zeron's taxable income.
A) $1,349,000
B) $1,378,800
C) $1,384,900
D) $1,399,800

Question

Quizplus · Accepted Answer

Zeron's taxable income is calculated by adding ordinary income, recaptured ordinary income, and net Section 1231 gain, then subtracting the net capital loss: $1,349,600 + $29,200 + $21,000 - $14,900 = $1,384,900.

Zeron Inc Generated $1,349,600 Ordinary Income from Operations This Year