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

question 7

Multiple Choice

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

Discount Rate

The interest rate charged to commercial banks and other financial institutions for the loans they take from the central bank or Federal Reserve.

Depository Institutions Deregulation

This involves removing or loosening government restrictions on banks and other financial institutions to allow for greater efficiency and competition.

Monetary Control Act

A United States federal law enacted in 1980 aimed at improving the Federal Reserve's control over the monetary supply and interest rates.

Thrift Institutions

Financial organizations focused on savings and mortgage lending, including savings and loan associations, credit unions, and savings banks.