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Builtrite had sales of $900,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000
Builtrite had sales of $900,000 and COGS of $280,000. In addition, operating expenses were calculated at 25% of sales. Builtrite also received dividends of $50,000 and paid out common stock dividends of $25,000 to its stockholders. A long-term capital gain of $70,000 was realized during the year along with a capital loss of $50,000 Based on the above information, answer questions 1 - 4. 2 pts D Question 4 If Builtrite had experienced a long-term capital loss of $20,000 (instead of the $50,000 long-term capital loss stated in the problem), and still had the $70,000 long-term capital gain stated in the problem, which of the following is correct (compared to the original answer): taxable income would increase by an additional $10,000 O taxable income would increase by an additional $20,000 taxable income would increase by an additional $30,000 O taxable income would not change
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