Chapter 8, Problem 20AP

Koil Corporation generated $718,400 ordinary income from the sale of inventory to its customers. It also sold three noninventory assets during the year. Compute Koil’s taxable income assuming that:

1. a. The first sale resulted in a $45,000 capital gain, the second sale resulted in a $12,000 capital loss, and the third sale resulted in a $19,000 capital loss.
2. b. The first sale resulted in a $17,000 ordinary gain, the second sale resulted in a $22,300 capital gain, and the third sale resulted in a $58,000 capital loss.
3. c. The first sale resulted in a $9,000 capital gain, the second sale resulted in a $16,100 capital loss, and the third sale resulted in an $8,800 ordinary loss.