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1. (16 points) TSK Corp. operates a document storage company. Scott, the president owns 40% of the stock. In 2018, TSK Corp, had Book Net

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1. (16 points) TSK Corp. operates a document storage company. Scott, the president owns 40% of the stock. In 2018, TSK Corp, had Book Net Income of $800,000. The following items were included in Book Net Income: il 20,000 Dividend income Interest income Long term capital gain Federal tax expense mohonan 213.000 ol Further discussion with Scott revealed the following additional information: 1. The corporation is a calendar year end and uses the accrual method of accounting. 2. The dividends were from a domestic corporation and TSK owns 20% of this stock. Lopen d 3. Interest income is from US Treasury Bonds. ). E 4. Book expenses included a $5000 penalty for late payment of Federal taxes, and $12,000 premiums on officer life insurance 5. Book expenses included an estimated bad debt expense of $40,000. Actual bad debt write offs during the year were $19000. 6. Book depreciation exceeds tax depreciation by $14,000. 7. The corporation has a long term capital loss carryover of $10,000 from 2016, 8. On July 1, 2018 TSK Corporation paid a distribution of $120,000 to its shareholders. At December 31, 2017, the corporation had accumulated earnings and profits of $ 242,000. 9. Assume a 21% tax rate. wob Based on the above information compute TSK's 2018 US taxable income and earnings and profits as of December 31, 2018. olevalgo b o ob dong Fondist rood bianco o oblube 1. (16 points) TSK Corp. operates a document storage company. Scott, the president owns 40% of the stock. In 2018, TSK Corp, had Book Net Income of $800,000. The following items were included in Book Net Income: il 20,000 Dividend income Interest income Long term capital gain Federal tax expense mohonan 213.000 ol Further discussion with Scott revealed the following additional information: 1. The corporation is a calendar year end and uses the accrual method of accounting. 2. The dividends were from a domestic corporation and TSK owns 20% of this stock. Lopen d 3. Interest income is from US Treasury Bonds. ). E 4. Book expenses included a $5000 penalty for late payment of Federal taxes, and $12,000 premiums on officer life insurance 5. Book expenses included an estimated bad debt expense of $40,000. Actual bad debt write offs during the year were $19000. 6. Book depreciation exceeds tax depreciation by $14,000. 7. The corporation has a long term capital loss carryover of $10,000 from 2016, 8. On July 1, 2018 TSK Corporation paid a distribution of $120,000 to its shareholders. At December 31, 2017, the corporation had accumulated earnings and profits of $ 242,000. 9. Assume a 21% tax rate. wob Based on the above information compute TSK's 2018 US taxable income and earnings and profits as of December 31, 2018. olevalgo b o ob dong Fondist rood bianco o oblube

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