For the events described below, select the tax-related term from the following list that best applies: gross income, depreciation, operating expense, taxable income, income tax, or net operating profit after taxes.

Question

(a) A corporation reports that it had a negative $1,750,000 net profit on its annual income statement.
(b) An asset with a current book value of $120,000 was utilized on a new processing line to increase sales by $200,000 this year.
(c) A machine has an annual write-off of $21,000.
(d ) The cost to maintain quality assurance equipment during the past year was $75,000.
(e) A supermarket collected $24,000 in lottery ticket sales last year. Based on the winnings paid to individuals holding these tickets, a rebate of $250 was sent to the store manager.
( f ) An asset with a book value of $8000 was retired and sold for $8450.
(g) The cost of goods sold in the past year was $3,680,200.
(h) An over-the-counter software system will generate $420,000 in revenue this quarter.

Answer 1

(a) Net operating profit after taxes; (b) Taxable income; (c) Depreciation;
(d) Operating expense; (e) Taxable income; (f) Taxable income;
(g) Operating expense; (h) Gross income