Starling and Bunting Had the Following Items of Income and Deduction

question 10

Multiple Choice

Starling and Bunting had the following items of income and deduction for the current year: $\begin{array}{ccc} &\text { Starling's }&\text { Bunting's Taxable }\\\text { Item } & \text { Taxable Income } & \text { Income } \\\hline \text { Income (loss) from Operations }&\$70,000&\$45,000\\\S 1231 \text { Loss }&(15,000) \\\text { Capital Gain (Loss) }&(12,000) &50,000\\\text { Charitable Contribution }&25,000&6,000\end{array}$ Compute Starling and Bunting's consolidated taxable income or loss.

• A)$106,200.
• B)$107,000.
• C)$124,200.
• D)$127,700.
• E)$138,000.

---

Definitions:

Sexual Abuse

Involves unwanted sexual activity, with perpetrators using force, making threats, or taking advantage of victims unable to give consent.

Psychosexual Stages

Freud's theory of stages of development from childhood to adulthood through which each person progresses, focusing on the erogenous zones that are the source of conflict at each stage.

Developmental Stage

A period in a person's life characterized by specific psychological or physical attributes typically associated with certain age ranges.

Defense Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and unacceptable impulses.