Question

On 12/31/X4, Zoom, LLC, reported a $69,000 loss on its books. The items included in the loss computation were $36,000 in sales revenue, $21,000 in qualified dividends, $28,000 in cost of goods sold, $56,000 in charitable contributions, $26,000 in employee wages, and $16,000 of rent expense. How much ordinary business income (loss) will Zoom report on its X4 return

Answer 1

-$34,000

Explanation:

As per the situation the solution of ordinary business income (loss) is here below:-

Ordinary business income (loss) = Sales revenue - Cost of goods sold - Employee wages - Rent expenses

= $36,000 - $28,000 - $26,000 - $16,000

= -$34,000

Therefore we simply applied the above formula to figure out the net loss that is -$34,000