On 12/31/X4, Zoom, LLC reported a $60,000 loss on its books. The items included in the loss computation were $30,000 in sales revenue, $15,000 in qualified dividends,$22,000 in cost of goods sold, $50,000 charitable contribution, $20,000 in employee wages, and $13,000 of rent expense. How much ordinary business income (loss) will Zoom report on its X4 return?
A) ($95,000).
B) ($60,000).
C) ($25,000).
D) ($8,000).

Question

Quizplus · Accepted Answer

To calculate the ordinary business income (loss), we need to exclude the non-business income and expenses. 
Qualified dividends and charitable contributions are non-business income or expenses. Therefore, we need to exclude $15,000 in qualified dividends and $50,000 charitable contribution from the loss computation. 
The calculation will be:
($30,000 - $22,000 - $20,000 - $13,000) = ($25,000)
Therefore, the answer is choice C, ($25,000).

On 12/31/X4, Zoom, LLC Reported a $60,000 Loss on Its