Trail Corporation Has Gross Profits on Sales of $140,000 and Deductible

question 33

Multiple Choice

Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is

• A)a $20,000 loss.
• B)a $40,000 loss.
• C)$60,000.
• D)$20,000.

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Definitions:

Period of Time

A specific duration marked by a beginning and an end, often used to describe or measure events or changes.

Indebtedness

The condition of owing money or being under financial obligation to others, which could include loans or issued bonds.

Profitability

A measure of how efficiently a company or business generates profit in relation to its revenue.