You purchase one IBM July 90 call contract for a premium of $4. The stock has a 2 for 1 split prior to the expiration date. You
1 answer:
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Answer:
$ 48,000
$3,200
Explanation:
Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.
Reason -
Business income = 120,000×40%
=
= $48,000
⇒Business income = $48,000
Tax-exempt = 8,000×40%
=
= $3,200
⇒Tax-exempt = $3,200