Omega Corporation reports the following results for the current year: Gross profits on sales $120,000 Dividends

Question:

Omega reports the following results for the current year:
Gross profits on sales …………………………………………………… $120,000
Dividends from less-than-20%-owned domestic corporations …………. 40,000
Operating expenses ……………………………………………………… 100,000
Charitable contributions (cash) ………………………………………….. 11,000
a. What is Omega’s charitable contributions deduction for the current year and its charitable contributions carryover to next year, if any?
b. What is Omega’s taxable income for the current year, assuming qualified production activities income is $20,000?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...