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General's Inc. has the following financial items for the current year: Advertising Expenses $60,000 Cost of...

General's Inc. has the following financial items for the current year: Advertising Expenses $60,000 Cost of Goods Sold $735,000 Other Operating Expenses $495,000 Sales $2,070,000 Wages and Salaries $345,000 Capital Loss $45,000 Calculate General's taxable income for the current year.

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Answer #1

Calculation of General's Taxable Income for the current year is given as under :

Note : Capital Loss $45,000 cannot be set off against any other income. Capital losses are allowed to be set off only against income from capital gains.

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