During 2012, Sparrow Corporation, a Calendar Year C Corporation, Had

question 8

Multiple Choice

During 2012, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,000.How much is Sparrow's tax liability for 2012?

• A)$42,650.
• B)$42,800.
• C)$45,650.
• D)$62,400.
• E)None of the above.

Recognize the economic and social factors leading to the boom-and-bust cycles in the American economy.

Understand the principles and frameworks of critical thinking, including the Holistic Critical Thinking Scoring Rubric.

Learn the role of critical thinking in fostering an open and free society.

Recognize critical thinking as a pervasive human phenomenon, requiring conscious effort and practice.

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Definitions:

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory, indicating the efficiency of inventory management.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its credit sales by calculating the number of times average receivables are collected during a period.

Average Days

Average days, often related to accounts receivable and payable, refers to the average number of days it takes a company to collect payments from customers or the time it takes to pay suppliers.