Tom,Dick,and Harry Operate Quality Stores By How Much Will Tom's Adjusted Gross Income Increase Because

question 135

Multiple Choice

Tom,Dick,and Harry operate Quality Stores.Based on advice from Tom's sister,a CPA,the three form a partnership.Tom owns 50%; Dick and Harry each own 25%.For the year,Quality Stores reports the following:
$\begin{array}{lr}\text { Sales revenues } & \$ 800,000 \\\text { Business expenses } & (440,000) \\\text { Investment expenses } & (4,000) \\\text { Short-term capital gains } & 26,000 \\\text { Long-term capital losses } & (14,000) \\\text { Taxable income } & \$ 368,000\end{array}$
By how much will Tom's adjusted gross income increase because of the above?

• A)$178,000
• B)$180,000
• C)$183,000
• D)$184,000
• E)$186,000

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Definitions:

Phylogeny

The evolutionary history and relationship among species or groups of organisms, often illustrated as a tree-like diagram showing divergent lines of descent.

Ecdysozoans

A major group of invertebrate animals including arthropods and nematodes, defined by their shared trait of molting an exoskeleton (ecdysis).

Unique Adaptation

A distinctive or specialized feature, structure, or behavior developed by an organism to improve its chances of survival and reproduction in its environment.

Insects

A class of arthropods, characterized by a three-part body (head, thorax, abdomen), three pairs of legs, compound eyes, and two antennae.