Question
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.
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