Charles Is a Single Person,age 35,with No Dependents

question 61

Multiple Choice

Charles is a single person,age 35,with no dependents.In 2019,Charles has gross income of $75,000 from his sole proprietorship.Charles also incurs $80,000 of deductible business expenses in connection with his proprietorship.He has interest and dividend income of $22,000.Charles has $7,000 of itemized deductions.Charles's taxable income is

• A)$4,800.
• B)$10,000.
• C)$17,000.
• D)none of the above.

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Definitions:

Debt-equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by its shareholder equity, indicating how much debt is used to finance assets.

Book Value

The net value of a company's assets minus its liabilities, often used to estimate the value of a company if it were to be liquidated.

Vertical Acquisition

A corporate strategy where a company acquires another company that operates in the production process of the same industry, either as a supplier or distributor.

Conglomerate Acquisition

A type of corporate takeover where a large, multi-industry company acquires another business that may be in an unrelated industry.