This year, Zeron Company generated $87,200 income from the performance of services for its clients. It also sold several assets during the year. Compute Zeron’s taxable income under each of the following alternative assumptions about the tax consequences of the asset sales. a. Zeron recognized $1,000 recaptured ordinary income, a $2,400 net Section 1231 gain, and a $7,000 capital loss.

b. Zeron recognized a $6,600 net Section 1231 loss and a $1,700 capital loss.

c. Zeron recognized $3,900 recaptured ordinary income, a $1,510 net Section 1231 gain, and a $1,200 capital gain.

d. Zeron recognized a $10,300 net Section 1231 loss and a $4,000 capital gain.

e. Zeron recognized a $2,800 net Section 1231 gain, a $5,200 capital gain, and a

$6,300 capital loss.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)