1-Topaz Corporation had $145,000 operating income and $30,000 operating expenses during the year. In addition, Topaz had a $30,000 short-term capital gain and a $40,000 short-term capital loss. Compute Topaz's taxable income for the year.

$115,000

$105,000

$112,000

$95,000

None of the above.

2-Manuel is the sole shareholder of Alpha, Inc. In 2010, Alpha had net income of $200,000. Manuel, who is in the 35% tax bracket, received a dividend of $100,000 from Alpha. He will pay a tax of $35,000 on the dividend.

1. True

   False

3- Jaime is the sole proprietor of a small business. In 2010, the business sold a capital asset for a loss of $20,000. Jaime is allowed to report the capital loss on his individual income tax return for 2010.

True

False