What is the taxable income of prunus

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Reference no: EM13825094

For the year ended December 31, 2013, Prunus, Inc., reported net income before federal income tax expense of $900,000 per the corporation’s books. This figure included the following items:

Interest income on tax-exempt municipal securities $30,000

Loss on sale of land acquired in 1985 as an investment $40,000

Interest expense on loan to purchase tax-exempt municipal securities $16,000

What is the taxable income of Prunus, Inc. for 2013?

a. $886,000

b. $900,000

c. $918,000

d. $926,000

e. None of the above

Reference no: EM13825094

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