HY-Text, Inc., a calendar-year cash-basis corporation, had the following transactions during the year:

Net income per books (after tax estimates)

$100,000

Federal income tax paid

22,250

Excess of capital losses over capital gains

5,000

Interest from municipal bonds

11,000

Expenses related to municipal bond interest

500

• What is HY-Text's taxable income?
• A.
• $116,750
• B.
• $127,750
• C.
• $77,750
• D.
• $139,000