Gold Corporation Sells Baseball Bats and Reported Net Income of $35,000

question 103

Multiple Choice

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

• A)Taxable income of $31,000,carryforward of zero.
• B)Taxable income of $31,500,carryforward of $500.
• C)Taxable income of $32,000,carryforward of zero.
• D)Taxable income of $35,000,carryforward of $4,000.

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Definitions:

Network Data

Information that is processed, stored, or transmitted over a network of interconnected computers and devices.

PAN

Personal Area Network, a network for the interconnection of personal computing devices within the range of an individual, typically within a range of 10 meters.

LAN

Stands for Local Area Network, a computer network that interconnects computers within a limited area such as a residence, school, or office building, facilitating communication and resource sharing.

WAN

An acronym for Wide Area Network, it's a telecommunications network that extends over a large geographic area for the purpose of computer networking.