Mary and Philip Purchased an Apartment Building in January 2004,which

question 114

Multiple Choice

Mary and Philip purchased an apartment building in January 2004,which they actively manage.During the current year,the apartment building generates a loss of $35,000.Their other income is as follows:
$\begin{array}{lr} \text { Salaries } &\$ 80,000 \\ \text { Dividends and interest } &8,000 \\ \text { Loss from limited partnership acquired in 1999 } &(4,000) \end{array}$
What is Mary and Philip's adjusted gross income?

• A)$59,000
• B)$63,000
• C)$84,000
• D)$88,000
• E)None of the above.

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Definitions:

Lowest-Cost Location

Refers to the geographic location selected for business operations, manufacturing, or logistics based on the criteria of minimal operational and production costs.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of the production increases, the cost per unit of the product decreases.

Total Logistics Cost

The overall expenses associated with the planning, implementing, and controlling of goods’ movement, including transportation, inventory, warehousing, and order processing costs.

Facilities

Physical locations and infrastructures, such as factories, warehouses, and offices, where business operations occur.