29. Blue Corporation had $150,000 operating income and $50,000 operating expense

Question

29. Blue Corporation had $150,000 operating income and $50,000 operating expenses during the year. In addition, Blue had a $90,000 short-term capital gain and a $45,000 short-term capital loss. Compute Blue's taxable income for the year. a. $100,000 b. $105,000 c. $145,000 d. $115,000 e. None of the above 30. Kylie incorporates her sole proprietorship, transferring it to newly formed Megatron Corporation. The assets transferred have an adjusted basis of $120,000 and a fair market value of $150,000. Also transferred was $50,000 in liabilities, all of which was borrowed for Kylie's personal uses.

Explanation / Answer

29. option C (150000-50000+90000-45000)

30. option b as the adjused basis of property is 120,000

31. option B as it has incurred net loss

32. option c (200000-170000)

33. option D (150000-75000-50000)

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