ABC, a corporation, generated $770,000 in operating income for the year. It also sold two depreciable operating assets (Section 1231 assets) during the year. For Asset 1, ABC realized a $19,000 gain on the sale. As of the date of the sale, ABC had taken $9,000 in depreciation on Asset 1. For Asset 2, ABC realized a $4,000 loss on the sale. Additionally, ABC had a $10,000 net capital loss carryforward to utilize.

What is ABC's income for the year? Why?

 

Answer rating: 100% (QA)

To calculate ABC Corporations income for the year we need to consider the operating incom... View the full answer