During the Current Year, Sparrow Corporation, a Calendar Year C

Multiple Choice

During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,000. How much is Sparrow's tax liability for the year?

A) $42,650
B) $42,800
C) $45,650
D) $62,400
E) None of the above