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Enter problem statement, appropriate input type, and other instructions here. Lilah Inc (LI) has the following items of income and expense in 2018 ( post

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Enter problem statement, appropriate input type, and other instructions here. Lilah Inc (LI) has the following items of income and expense in 2018 ( post Tax Reform Act). Sales $125,000,000, cost of goods sold 25,000,000, sales and marketing expense $ 40,000,000depreciation $10,000,000, and interest expense $ 30,000,000. What is Li's 2018 taxable income ? (Note, the CARES Act does not apply in 2018.) A. $60,000,000 B. $20,000,000 C. $32,000,000 D. $35,000,000 XYZ had a net operating loss of $800,000 in 2018. XYZ had taxable income ( before any NOL deduction) of $200,000 in 2019 and $700,000 in 2020. What is XYZ's taxable income after its NOL deduction in 2019 and 2020. For purposes of this question ignore the provisions in the CARES Act O A. $200,000 in 2019 and $700,000 in 2020 B. $40,000 in 2019 and $140,000 in 2020 C. SO in 2019 and $100,000 in 2020 D. $40,000 in 2019 and $60,000 in 2020. Lilah owns 400 shares and Juliet owns 600 shares of LJ Inc (LJI ) stock. Lilah's basis in her shares is $ 4,000 ($10 per share.) Juliet's basis in her shares is $9,000 ($15 per share.) On July 1, 2019 LJI pays a 15 % stock dividend to Lilah and Juliet. Lilah receives 60 shares and Juliet receives 90 shares. Each of these shares is worth $25. Lji has $1,000,000 of E&P.What amount of dividend Income does Lilah report on her 2019 tax return and what is her total tax basis tax basis in her 460 shares of LJI ? A. Lilah reports no dividend income and has a tax basis of $4000 in her shares. B. Lilah reports no dividend income and has a tax basis of $5500 in her shares C. Lilah reports $1500 of dividend income and has a tax basis of $4000 in her shares. D. Lilah reports $1500 of dividend income and has a tax basis of $5500 in her shares Jon and Ellyn form a corporation. Jon transfers inventory with a fair market value of $500,000 and a tax basis of $200,000 in exchange for 500 shares of EJ, Inc.Ellyn transfers machinery and equipment with a fair market value of $500,000 and a tax basis of $450,000 in exchange for 400 shares of EJ, Inc stock and cash of $100,000.Ellyn originally purchased the equipment for $700,000 and claimed $250,000 of depreciation on it. What tax basis do Jon and Ellyn have in their EJ, Inc stock? O A. Jon's basis is $200,000 Ellyn's basis is $500,000 B. Jon's basis is $200,000 and Ellyn's basis is $450,000 OC. Jon's basis is $500,000 and Ellyn's basis is $400,000 OD. Jon's basis is $200,000 and Ellyn's basis is $400,000

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