LO1 Charger, Inc., has the following items for the current year: a. What are the corporations taxable

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LO1 Charger, Inc., has the following items for the current year: image text in transcribed

a. What are the corporation’s taxable income and tax liability?

b. Assume that Charger is, and always has been, an S corporation wholly owned by Suzanne, a married taxpayer with no dependents and no other income or deductions.
What are the tax liabilities of Charger and Suzanne?

c. Write a memo explaining why the answers in parts a and b are different.

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Concepts In Federal Taxation 2011

ISBN: 9780538467926

18th Edition

Authors: Kevin E. Murphy, Mark Higgins

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Question Posted: Jul 19, 2024 11:00 PM

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LO1 Charger, Inc., has the following items for the current year: a. What are the corporations taxable

Question:

Net operating income $100,000 Dividend income (50%-owned corporation) 40,000 Charitable cash contributions 20,000 Net operating loss carryover 10,000

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Concepts In Federal Taxation 2011

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