Khalid, Who Is Single, Reports the Following Items for 2019

question 73

Multiple Choice

Khalid, who is single, reports the following items for 2019: $$\begin{array} { l r } \text { Salary } & \$ 40,000 \\\text { Interest income on U.S. Treasury bonds } & 8,000 \\\text { Loss on theft of securities } & ( 60,000 ) \\\text { Interest income on New York state bonds } & 12,000\end{array}$$ What is Khalid's NOL for 2019?

• A)($10,000)
• B)($12,000)
• C)($16,100)
• D)($24,050)
• E)None of these.

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Definitions:

Surplus

The amount by which revenues exceed expenditures in a budget, often referring to profit or the excess of assets over liabilities.

Listed

Refers to a company or security that is officially registered and available for trading on a public stock exchange.

No-liability

A type of company structure where shareholders are not obliged to contribute additional equity to cover company debts in case of insolvency.

Limited by Guarantee

A form of incorporation used primarily by non-profit organizations where the liability of the members is limited to the amount they agree to contribute if the company is wound up.