During the Current Year, Jay Corporation, a Calendar Year Personal

question 21

Multiple Choice

During the current year, Jay Corporation, a calendar year personal service C corporation, had operating income of income of $300,000, operating expenses of $200,000, a short-term capital gain of $5,000, and a long-term capital loss of $35,000. How much is Jay's income tax liability for the year?

• A) $14,700.
• B) $21,000.
• C) $22,250.
• D) $35,000.
• E) None of the above.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its share price.

Multiple-Step Income Statement

A form of income statement that contains several sections, subsections, and subtotals.

Earnings Per Share

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock.

Price-Earnings Ratio

A financial ratio that measures a company's current share price relative to its per-share earnings, used to evaluate the relative value of a company's shares in the market.