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Aram's taxable income before considering capital gains and losses is $84,000. Determine Aram's taxable income and how much of the income will be taxed at ordinary rates in each of the following alternative scenarios (assume Aram files as a single taxpayer).
Required:
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Boyne Inc. had a beginning inventory of $12,000 at a cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at retail. Net mark-ups were $10,000; net markdowns were $7,000; and sales revenue was $147,000. Compute ending inventor..
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