Maize Corporation had $200,000 operating income and $90,000 operating expenses during the year.In addition,Maize had a $25,000 long-term capital gain and a $16,000 short-term capital loss.Compute Maize's taxable income for the year.
A)$91,000.
B)$94,000.
C)$110,000.
D)$119,000.
E)None of the above.

Question

Quizplus · Accepted Answer

Taxable income = Operating income - Operating expenses + Capital gains - Capital losses
Taxable income = $200,000 - $90,000 + ($25,000 - $16,000)
Taxable income = $119,000

Maize Corporation Had $200,000 Operating Income and $90,000 Operating Expenses