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) ($8,000).
B) ($25,000).
C) ($60,000).
D) ($95,000).

Question

Quizplus · Accepted Answer

While Zoom shows a loss on its books, some of the items included in calculating its book loss will be separately stated on its return. Specifically, its qualified dividends and charitable contribution deduction will be separately stated. After removing these items from the $60,000 book loss, the ordinary business loss reported on its tax return would be $25,000.

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