During the Current Year, Sparrow Corporation, a Calendar Year C

question 69

Multiple Choice

During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,000. How much is Sparrow's income tax liability for the year?

• A) $32,700
• B) $33,600
• C) $45,650
• D) $62,400
• E) None of these.

---

Definitions:

Method of Inclusion

A specific approach or criteria used to determine what is considered in a calculation or consideration.

Method of Exclusion

A strategy used to prevent certain groups or individuals from accessing a service, market, or opportunity.

Right-to-Work Laws

Legislation that guarantees workers the right to work for any employer without the requirement to join a union or pay union dues.

Union Shops

Workplaces where employment is conditional on maintaining membership in a labor union, typically after a probationary period.