Norma Formed Hyacinth Enterprises,a Proprietorship,in 2008

question 15

Multiple Choice

Norma formed Hyacinth Enterprises,a proprietorship,in 2008.In its first year,Hyacinth had operating income of $150,000 and operating expenses of $100,000.In addition,Hyacinth had a long-term capital loss of $4,000.Norma,the proprietor of Hyacinth Enterprises,withdrew $25,000 from Hyacinth during the year.Assuming Norma has no other capital gains or losses,how does this information affect her taxable income for 2008?

• A)Increases Norma's taxable income by $25,000.
• B)Increases Norma's taxable income by $21,000 ($25,000 income - $4,000 long-term capital loss).
• C)Increases Norma's taxable income by $47,000 ($50,000 income - $3,000 long-term capital loss).
• D)Increases Norma's taxable income by $50,000.
• E)None of the above.

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Definitions:

Moral Intensity

The perceived importance or magnitude of the ethical implications in a given situation or decision, influencing moral judgments and actions.

Distributive Justice

The perceived fairness in the allocation of resources or rewards within a group or organization, impacting individuals' satisfaction and motivation.

Utilitarianism

A moral theory stating that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Employee Stress

The mental, emotional, or physical strain experienced by workers due to various workplace demands or challenges.