QUESTION 2

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Builtrite had sales of $700,000 and COGS of $280,000. 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 $55,000 was realized during the year along with a capital loss of $70,000 Based on the above information, answer the following 4 questions: Instructions Timed Test This test has a time limit of 1 hour.You will be notified when time expires, and you may continue or submit. Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Multiple Attempts Not allowed. This test can only be taken once. Force Completion This test can be saved and resumed later. The timer will continue to run if you leave the test. Remaining Time: 26 minutes, 32 seconds. Question Completion Status: 1 2 3 4 5 QUESTION 1 What is Builtrite’s taxable income? $242,000 $217,000 $257,000 $285,000
1 points QUESTION 2
Based on their taxable income, what is Builtrite’s tax liability?

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