In Its First Taxable Year, Platform, Inc

question 2

Multiple Choice

In its first taxable year, Platform, Inc. generated a $100,000 net operating loss and made a $10,000 cash donation to a local charity. In its second year, Platform generated $350,000 operating income and made a $20,000 donation to the same charity. Compute Platform's taxable income for its second year.

• A) $225,000
• B) $220,000
• C) $320,000
• D) $230,000

---

Definitions:

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividends paid to shareholders.

Dividend Increases

Instances where a company raises the amount of money it pays to its stockholders in dividends.

Market Rate

The prevailing interest rate or cost of borrowing in the financial markets at any given time.

Annual Dividend

A yearly payment made by a corporation to its shareholders, usually derived from profits.