$$Q: The chart below describes the $1231$ assets sold by Red Wing Company $($a sole proprietorship$)$ in $2024.$ Asset$$ Cost$$ Accum. Depr.$$ Sale Price $$ Asset$$ $$40,000$ $ $30,000$$$2,000$ Machine$70,000095,000$ Land$53,00053,00060,000$ Tractor$74,00074,00020,000$Crane Red Wing Company has an unused $1231$ loss of $$14,000$ from $2023.$ Assuming that there are no casualty gains or losses during $2024$ and that Red Wing Company has no other transactions involving either capital assets or $1231$ assets, how much is Red Wing Company's ordinary income for $2024$ that results from these transactions?

Question options:

a$)$ $$87,000$

b$)$ $$10,000$

c$)$ $$80,000$

d$)$ $$73,000$

e$)$ $$24,000$

Q: $$During the year, Canadian Corporation, who owns $12\%$ of Bruin Corporation's stock, has the following transactions: $$

Operating income $$660,000$

Operating expenses $720,000$

Dividends received from Bruin Corporation $240,000$

How much is Canadian Corporation's taxable income or net operating loss for the year?

Question options:

a$)$ Taxable income $=$ $$180,000$

b$)$ Taxable income $=$ $$90,000$

c$)$ Taxable income $=$ $$60,000$

d$)$ Taxable income $=$ $$54,000$

e$)$ Net operating loss $=$ $$60,000$

Q: During the year, Capital Corporation, who owns $26\%$ of Lightning Corporation's stock, has the following transactions: $$

Operating income $$330,000$

Operating expenses $380,000$

Dividends received from Lightning Corporation $120,000$

How much is Capital Corporation's taxable income or net operating loss for the year?

Question options:

a$)$ Taxable income $=$ $$70,000$

b$)$ Taxable income $=$ $$35,000$

c$)$ Taxable income $=$ $$24,500$

d$)$ Net operating loss $=$ $$50,000$

e$)$ Net operating loss $=$ $$8,000$