Raymond Corporation reports the following resuits for the current year: E (Click on the icon to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Raymond Corporation reports the following resuits for the current year: E (Click on the icon to view the results for the current year ) (Click on the icon to view the tax rate schedule.) Requirement What are Raymond's taxable income and income tax liability, assuming qualified production activities income is $40,000? Begin by computing Raymond's taxable income before special deductions, then calculate the taxable income. (Enter the special deductions in the specific sequence dictated by the tax rules.) Gross income Minus: Taxable income before special deductions Gross profits on sales $ 150,000 Short-term capital gain 50,000 Long-term capital gain 40,000 Dividends from 25%-owned domestic corporation 20,000 NOL carryover from the preceding tax year 7,000 Operating expenses 110,000 CORPORATIONS If Taxable Income Is: The Tax Is: Over- But Not Over- Of the Amount Over- 2$ O $ 50,000 15% $ 50,000 75,000 $ 7,500 + 25% 50,000 75,000 100,000 13,750 + 34% 75,000 100,000 335,000 22,250 + 39% 100,000 335,000 10,000,000 113,900 + 34% 335,000 10,000,000 15,000,000 3,400,000 + 35% 10,000,000 15,000,000 18,333,333 5,150,000 + 38% 15,000,000 18,333,333 6,416,667 + 35% 18,333,333 Note: If taxable income is at least $335,000 but less than $10,000,000, the corporation pays a flat 34% tax rate on all of its taxable income. Raymond Corporation reports the following resuits for the current year: E (Click on the icon to view the results for the current year ) (Click on the icon to view the tax rate schedule.) Requirement What are Raymond's taxable income and income tax liability, assuming qualified production activities income is $40,000? Begin by computing Raymond's taxable income before special deductions, then calculate the taxable income. (Enter the special deductions in the specific sequence dictated by the tax rules.) Gross income Minus: Taxable income before special deductions Gross profits on sales $ 150,000 Short-term capital gain 50,000 Long-term capital gain 40,000 Dividends from 25%-owned domestic corporation 20,000 NOL carryover from the preceding tax year 7,000 Operating expenses 110,000 CORPORATIONS If Taxable Income Is: The Tax Is: Over- But Not Over- Of the Amount Over- 2$ O $ 50,000 15% $ 50,000 75,000 $ 7,500 + 25% 50,000 75,000 100,000 13,750 + 34% 75,000 100,000 335,000 22,250 + 39% 100,000 335,000 10,000,000 113,900 + 34% 335,000 10,000,000 15,000,000 3,400,000 + 35% 10,000,000 15,000,000 18,333,333 5,150,000 + 38% 15,000,000 18,333,333 6,416,667 + 35% 18,333,333 Note: If taxable income is at least $335,000 but less than $10,000,000, the corporation pays a flat 34% tax rate on all of its taxable income.
Expert Answer:
Answer rating: 100% (QA)
Raymonds t o l Qualified production activities income 40000 Gross Profit on sales S50 000 Sh... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
Students also viewed these accounting questions
-
Alpha Corporation reports the following results for the current year: Net income per books (before federal income taxes) . . . . . . . . . . . . . . . . . . . . . . . . . $738,000 Federal income tax...
-
Beta Corporation reports the following results for the current year: Gross income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .$180,000 Dividends from less-than-20%-owned...
-
Theta Corporation reports the following results for the current year: Gross profits on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
Tom Jones, the mechanic at Golden Muffler Shop, is able to install new mufflers at an average rate of 4 per hour (or about 1 every 15 minute), according to a negative exponential distribution....
-
Computek Ltd. completed the following transactions during 2015. The companys fiscal year ends on December 31, 2015. Jan. 8 Purchased on account merchandise for resale at a cost of $ 14,500, with...
-
Someone you know gets a perfect score on the SAT. What personal, family, and social characteristics do you think this individual has? Another person becomes a serial killer. Without knowing this...
-
Complete parts 3, 4, and 5 of Problem 7-1A using the results of parts 1 and 2 of this problem. Problem 7-1 Wise Company completes these transactions during April of the current year (the terms of all...
-
During its manufacture, plate glass at 600C is cooled by passing air over its surface such that the convection heat transfer coefficient is h = 5 W/m2 K. To prevent cracking, it is known that the...
-
Need Help? -5 Read It [-/4 Points] DETAILS 5 (7,6) 5
-
Determine the moment of each force about the bolt located at A. Given: FB = 40 lb a = 2.5 ft α = 20 deg γ = 30 deg FC = 50 lb b = 0.75 ft β = 25 deg Fc FB
-
STU Corporation reports the following financial information for the year ended December 31, 2023: Item Amount ($) Net Income 100,000 Dividends Paid 20,000 Required: Calculate the dividend payout...
-
sin x Q2: Find the Derivative of y=Xx Q3: Find second order derivative of y=x+2x+3x+ x
-
a)Write a C# program to create List instead of array for the cars array below and add all the car items to the list. (3 marks) cars={"Volvo","BMW","Ford","Mazda"}; b)Write HTML code for following web...
-
Assuming a competitive market for N95 masks, explain the effect on equilibrium price and quantity of the following scenarios: a) a change in technology that decreases the cost of manufacturing the...
-
What role does metacognition play in the enhancement of organizational skills, particularly in the context of project management and strategic planning?
-
During manufacture, Stephen notices the indicator light on one of the machines in the assembly line flashing red. He immediately recognizes this as an indication of a problem with the machine and...
-
Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
-
Find the APR in each of the following cases: NUMBER OF TIMES COMPOUNDED Semiannually Monthly Weekly Infinite EAR APR 10.4% 8.9 11.6 15.4
-
The personal holding company tax and the accumulated earnings tax reflect efforts to prevent use of the corporate entity to avoid taxation. Explain the congressional intent behind these two tax...
-
Demetrius sells word processing equipment used in his business to Edith. He then purchases new word processing equipment from Zip Corporation. a. Do the sale and purchase qualify as a like-kind...
-
P and S Corporations have filed consolidated tax returns on a calendar year basis for several years. Both corporations use the accrual method of accounting. On January 1 of the current year, S begins...
-
Suppose a company has five-year, semiannual-coupon bonds carrying an 8 percent coupon rate that are selling for $1,200. What would be the aftertax cost of debt on these bonds if the appropriate tax...
-
Suppose a company has five-year, semiannual-coupon bonds carrying an 8 percent coupon rate that are selling for $1,200. What would be the beforetax cost of debt on these bonds if the appropriate tax...
-
Suppose a firm has 19 million shares of common stock outstanding with a par value of \($1.00\) per share. The current market price per share is \($18.35\). The firm has outstanding debt with a par...
Study smarter with the SolutionInn App