During the Current Year, Sparrow Corporation, a Calendar Year C

question 96

Multiple Choice

During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,000. How much is Sparrow's tax liability for the year?

• A)$42,650
• B)$42,800
• C)$45,650
• D)$62,400
• E)None of the above

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Definitions:

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