Sol corp stock sold 11094 real estate investment

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Unformatted text preview: the $2,200 municipal bond income or $3,000 is included in income. CPA-04378 Type1 M/C 150. CPA-04378 A-R Corr Ans: K PII May 92 #5 (Adapted) 15 PM#56 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: Taxable domestic corporation Clove Corp. Ramo Corp. Sol Corp. (stock sold 1/10/94) Real Estate Investment Trust Mutual Fund Corp. (capital gains dividends only) Money Market Fund (invests only in interest-paying securities) Total dividends Date stock acquired 7-1-87 9-1-89 12-1-93 6-1-92 % ow...
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