2) Green Corporation reported the following activity during the year:

Gross Profit $68,360,820

Operating Expenses $49,001,726

Dividends Received $373,000

(from 12% owned corporation)

a) Calculate the corporations taxable income and tax liabilityassuming production activities income amounted to $19,359,094.

b) Calculate the corporations taxable income and tax liability assuming operating expenses amount to $68,449,371 assuming that production activities income is zero or negative.

c) Calculate the corporations taxable income and tax liability assuming operating expenses amount to $69,576,275 assuming that production activities income is zero or negative.

Bedford Corporation reported the following activity during the year:

Gross Profit $70,037,630

Dividends Received from 10% owned domestic corporation $271,000

Operating Expenses $44,546,039

Charitable Contributions $8,007,570

In addition, the corporation has a net operating loss carryforward from 2015 amounting to $1,808,372, and production activities income amounted to $25,491,591.

a) How much is the corporations taxable income and tax liabilitythis year?

b) What carryovers are available to the corporation in future years?

Corporate Tax Rate Schedule

If taxable income (Form 1120, Line 30) is:

Over But Not Over Tax Is Of the amount over

$0 $50,000 15% $0

$50,000 $75,000 $7,500 +25% $50,000

$75,000 $100,000 $13,750 +34% $75,000

$100,000 $335,000 $22,250 +39% $100,000

$335,000 $10,000,000 $113,900 +34% $335,000

$10,000,000 $15,000,000 $3,400,000 +35% $10,000,000

$15,000,000 $18,333,333 $5,150,000 +38% $15,000,000

$18,333,333 no limit 35% $0