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Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 What is Builtrite's taxable income? $280,000 $257,000 $232,000 $217,000

Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 What is Builtrite's taxable income? $280,000 $257,000 $232,000 $217,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 What is Builtrite's taxable income? $280,000 $257,000 $232,000 O $217,000 Question 2 Builtrite had sales of $700,000 and C0GS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 Based on their taxable income calculated in question 1 (used for calculating taxes), how much would Builtrite's true net profits before tax increase in their income statement shown to the stockholders? $0 $12,000 $28,000 O $40,000
Transcribed Image Text:Question 1 Builtrite had sales of $700,000 and COGS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 What is Builtrite's taxable income? $280,000 $257,000 $232,000 O $217,000 Question 2 Builtrite had sales of $700,000 and C0GS of $300,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $40,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $80,000 was realized during the year along with a capital loss of $60,000 Based on their taxable income calculated in question 1 (used for calculating taxes), how much would Builtrite's true net profits before tax increase in their income statement shown to the stockholders? $0 $12,000 $28,000 O $40,000
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