Question 13

We are asked about the exact gross income of Corporation C for year X.

Statement (1) alone: Statement (1) tells us the exact gross income of Corporation C in year Y. Since we are not given information about year X, the answer cannot be determined from statement (1) alone. Hence, (A) and (D) must be eliminated.

Statement (2) alone: Statement (2) tells us that the exact gross income in year X was 5% more than the gross income for year Y. But, we have no information about the exact gross income for year Y from statement (2) alone. (Remember that you must consider statement (2) alone.) When you consider statement (2) alone, you cannot rely on the information in statement (1). The answer cannot be determined from statement (2) alone. Hence, (B) must be eliminated.

Since, the question cannot be answered from either of statements (1) or (2) alone, we are left with (C) or (E) and must consider statements (1) and (2) together.

Statements (1) and (2) together: Statement (1) tells us the gross income in year Y. Statement (2) tells us that the gross income in year X is 5% more than the amount in year Y. Therefore, the gross income in year X can be determined from and only from both statements together.

Hence, the answer is (C).