Question
The Watkins Group, LLC, had the following items for the current year: Income from clients $200,000 Dividend income 500 Depreciation expense 3,000 Other operating expenses
The Watkins Group, LLC, had the following items for the current year:
| Income from clients | $200,000 |
| Dividend income | 500 |
| Depreciation expense | 3,000 |
| Other operating expenses | 125,000 |
| Charitable contributions | 1,500 |
| Sec. 1231 gain on sale of equipment | 1,200 |
| Sec. 1245 gain on sale of equipment | 1,000 |
What is the Watkins Groups ordinary income?
- $70,500
- $72,700
- $73,000
- $73,500
Answer is C but I do not know which items to include.
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Auditing And Assurance Services
Authors: David Ricchiute
7th Edition
0324117760, 978-0324117769
