During the Current Year, Jay Corporation, a Calendar Year Personal

question 70

Multiple Choice

During the current year, Jay Corporation, a calendar year personal service C corporation, had operating income of $300,000, operating expenses of $200,000, a short-term capital gain of $5,000, and a long-term capital loss of
$35,000. How much is Jay's income tax liability for the year?

• A) $14,700.
• B) $21,000.
• C) $22,250.
• D) $35,000.
• E) None of these.

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Definitions:

Urinary Bladder

A muscular sac in the pelvis that stores urine from the kidneys before it is excreted out of the body through urination.

External Urinary Sphincter

A muscular mechanism that controls the retention and release of urine from the bladder.

Ureteral Openings

The points at which the ureters, tubes that carry urine from the kidneys, connect to the bladder.

Urethral Sphincter

A muscle that controls the release of urine from the bladder.