Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Green Corporation has gross profits on sales of $175,000 and deductible expenses of $225,000. In addition, Green has a net capital gain of $65,000.

1. Green Corporation has gross profits on sales of $175,000 and deductible expenses of $225,000. In addition, Green has a net capital gain of $65,000. Green's taxable income is

A) a $50,000 loss.

B) a $115,000 loss.

C) $50,000.

D) $15,000.

2. Corporation has taxable income of $250,000 calculated before the charitable contribution deduction and before its dividends-received deduction of $34,000. COBM makes cash contributions of $40,000 to charitable organizations. What is COBM Corporation's charitable contribution deduction for the current year?

A) $24,600

B) $28,000

C) $30,000

D) $35,000

3. Identify which of the following statements is true.

A) A corporation that is a member of an affiliated group filing a consolidated tax return may be allowed a tax year which is different from the group's parent.

B) An S corporation must generally use a calendar year.

C) A corporation's first year must cover a twelve-month period.

D) All of the above are false.

4. Corona Corporation has the following income and expense items for the year:

Gross receipts from sales

$75,000

Dividends received from 30%-owned domestic corporation

50,000

Expenses connected with sales

40,000

The taxable income of Ghandi Corporation is

A) $100,000.

B) $85,000.

C) $52,500.

D) $35,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Certified Quality Auditor Handbook

Authors: Lance B Coleman

5th Edition

1951058097, 978-1951058098

More Books

Students also viewed these Accounting questions