Johnson Corporation's 2016 Business Operating Income Is $200,000

question 87

Multiple Choice

Johnson Corporation's 2016 business operating income is $200,000.Johnson also recognizes an $8,000 Section 1231 loss,an $11,000 Section 1231 gain,and a $5,000 long-term capital loss from the sale of investment securities.What is Johnson Corporation's 2016 taxable income?

• A)$195,000
• B)$198,000
• C)$200,000
• D)$203,000
• E)$211,000

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Definitions:

Altered

Changed in character, form, or function; often referring to modifications that affect the integrity or original condition of an item or document.

Transferor

A transferor is a party who transfers rights, titles, or interests in a property or contract to another party, known as the transferee.

Transferee

An individual or entity that receives property, rights, or interest from another through a lawful transfer.

Present

The current moment or period of time; also refers to formally introducing or making something known.