For the year ended December 31, 2014, McEwing Corporation, a calendar-year corporation, reported book income before income taxes of $120,000. Included in the determination of this amount were the following gain and losses from property that had been held for more than one year:
- Loss on sale of building depreciated on the straight-line method: $(7,000)
- Gain on sale of land used in McEwing's business: $16,000
- Loss on sale of investments in marketable securities : $(8,000)
For the year ended December 31, 2014, McEwing's taxable income was
a. $113,000
b.$120,000
c. $125,000
d. $128,000
Answer: B
CPA Exam
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