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4.XYZ Company is a Chemical industrial company, the income statement for 2020 shows the following accounts: 2,500,000 1,100,000 Sales CGS 1,400,000 G.P G&A expense Salaries
4.XYZ Company is a Chemical industrial company, the income statement for 2020 shows the following accounts: 2,500,000 1,100,000 Sales CGS 1,400,000 G.P G&A expense Salaries 500,000 Social sec. 75,000 Utilities 40,000 Professional fees 30,000 Write-down/inventory 25,000 Provision /lawsuit 40,000 Donations (25%) 80,000 Headquarter cost 60,000 Total Exp. 850,000 N.I from operations Other gains & Losses Gain on disposal of land Dividends received Loss on sale of equipment Net Income Required: Determine taxable income and tax due 250,000 25,000 30,000 (20,000) 285,000
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