Tom, Dick, and Harry Operate Quality Stores By How Much Will Tom's Adjusted Gross Income Increase Because

question 53

Multiple Choice

Tom, Dick, and Harry operate Quality Stores. Based on advice from Tom's sister, a CPA, the three form a partnership. Tom owns 50%; Dick and Harry each own 25%. For the year, Quality Stores reports the following:
?
$$\begin{array} { l r } \text { Sales revenues } & \$ 800,000 \\\text { Business expenses } & ( 440,000 ) \\\text { Charitable Contributions } & ( 4,000 ) \\\text { Short-term capital gains } & 26,000 \\\text { Long-term capital losses } & ( 14,000 ) \\\text { Taxable income } & \$ 368,000\end{array}$$
By how much will Tom's adjusted gross income increase because of the above?

• A)$178,000
• B)$180,000
• C)$183,000
• D)$184,000
• E)$186,000

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