S treasury notes municipal bonds total interest 18000

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Unformatted text preview: (13,430) $(14,550) CPA-04374 Explanation Choice "A" is correct. $0. Capital gains dividend is used to offset long-term capital loss. CPA-04375 Type1 M/C 147. CPA-04375 A-R Corr Ans: E PII May 92 #5 (Adapted) 12 PM#53 R 3-99 Page 3 Following is Ral Corp.'s condensed income statement, before federal income tax, for the year ended December 31, 1993: Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): Interest Dividends Net long-term capital loss Income before federal income tax $1,000,000 (700,000) 300,000 (220,000) 80,000 $5,200 19,200 (6,400) Additional information: Interest arose from the following sources: U.S. Treasury notes Municipal bonds Total interest 18,000 98,000 $ 3,000 2,200 5,200 Dividends arose from the following sources: Date stock % owned 85 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Taxable domestic corporation Clove Corp. R...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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