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 qualifying 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

To calculate the ordinary business income (loss), we need to subtract the qualifying dividends and charitable contribution from the loss computation.

Ordinary business income (loss) = Sales revenue - Cost of goods sold - Employee wages - Rent expense
= $30,000 - $22,000 - $20,000 - $13,000
= ($25,000)

Therefore, the answer is B. ($25,000)

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