What Is George's Gross Income If He Has the Following

question 17

Multiple Choice

What is George's gross income if he has the following: $78,000 salary, $4,000 dividend income, $2,000 interest income on city of San Francisco bonds, a gain of $14,000 on a stock sale, and a $4,000 operating loss on a small sole proprietorship that he owns?

• A)$78,000
• B)$84,000
• C)$92,000
• D)$96,000

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Definitions:

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services.

Profit Rate

The ratio of net profits to total revenues of a business, indicating its efficiency at generating profit.

Inventory

The total amount of goods and raw materials held by a business to facilitate production or meet customer demand.

Invest

The action of designating assets, typically capital, in hopes of generating financial gains.