Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is Group of answer choices1. $20,000.00 2. $20,000.00 Loss3. $40,000.00 Loss 4. $60,000.00

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Business

Ansley Mcbride

19 March, 10:27

Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is Group of answer choices1. $20,000.00 2. $20,000.00 Loss3. $40,000.00 Loss 4. $60,000.00

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Answers (1)

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Janessa Estes · Answer 1

1. $20,000

Explanation:

Given: Gross Profits on sale $140,000

Deductible Expenses $180,000

Net Capital Gain: $60,000

An individual's taxable income is arrived at, by including all incomes and gains and deducting those losses and expenses which are allowed to be claimed or qualify for deduction.

Taxable Income = Gross Profit + Capital Gain - Deductible expenses

Taxable Income = $140,000 + $60,000 - $180,000

Taxable Income = $20,000