Airfreight Corporation has book income of $370,000. Book income includes a $25,000 gain realized on a like-kind nontaxable exchange of realty. Based only on these items, compute Airfreight's taxable income.

Question

Quizplus · Accepted Answer

The $25,000 gain realized on the like-kind nontaxable exchange of realty is not included in taxable income, therefore taxable income is $370,000 - $25,000 = $345,000.

Airfreight Corporation Has Book Income of $370,000