Elk, a C corporation, has $370,000 operating income and $290,000 operating expenses during the year.In addition, Elk has a $10,000 long-term capital gain and a $17,000 short-term capital loss.Elk's taxable income is:
A)$63,000.
B)$73,000.
C)$80,000.
D)$90,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Taxable income = Operating income - Operating expenses + Long-term capital gain - Short-term capital loss
= $370,000 - $290,000 + $10,000 - $17,000
= $73,000

Elk, a C Corporation, Has $370,000 Operating Income and $290,000