PWD Incorporated Is an Illinois Corporation

question 107

Multiple Choice

PWD Incorporated is an Illinois corporation. It properly included, deducted, or excluded the80) following items on its federal tax return in the current year: PWD's Federal Taxable Income was $100,000. Calculate PWD's Illinois state tax base.

• A) $131,000.
• B) $116,000.
• C) $164,333.
• D) $130,833.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Gross Margin Percentage

A financial metric that measures the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage; it shows the proportion of money available to cover other expenses and profit.

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets, indicating how effectively a company is using its assets to generate earnings.

Long-Term Debt

Borrowings and financial obligations that are due for repayment in a period exceeding one year.