John Files a Return as a Single Taxpayer

question 42

Multiple Choice

John files a return as a single taxpayer.In 2015,he had the following items: ∙ Salary of $40,000. ∙ Loss of $65,000 on the sale of § 1244 stock acquired two years ago. ∙ Interest income of $6,000. Determine John's AGI for 2015.

• A)($5,000).
• B)$0.
• C)$45,000.
• D)$51,000.
• E)None of the above.

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Definitions:

Horizontal Merger

A type of business consolidation that occurs between firms that operate in the same industry.

Vertical Merger

A combination of two or more companies at different stages of production in the same industry.

Conglomerate Company

A large corporation that owns a diversified group of other companies across various industries, with no single business dominating its portfolio.

Minority-Owned

Refers to a business that is at least 51% owned, controlled, and operated by individuals from a recognized minority group.