Question
84. Compute MV Corp.s 2015 taxable income given the following information relating to its year 1 activities. Also, compute MVs Schedule M-1 assuming that MVs
"84. Compute MV Corp.s 2015 taxable income given the following information relating to its year 1 activities. Also, compute MVs Schedule M-1 assuming that MVs federal income tax expense for book purposes is $100,000.
Gross profit from inventory sales of $500,000 (no booktax differences). DividendsMVreceivedfrom25percent-ownedcorporationof$100,000(assume
this is also MVs pro rata share of the distributing corporations earnings). Expenses other than DRD, charitable contribution (CC), net operating loss
(NOL), and domestic production activities deduction (DPAD) are $350,000
(no booktax differences). NOL carryover from prior year of $10,000. Cash charitable contribution of $120,000. Domestic production activities deduction of $5,000 (wage limitation does
not apply)."
(Ayers 5-54)
Ayers, Benjamin, Connie Weaver, Brian Spilker, Ronald Worsham, John Robinson, Edmund Outslay, John B. McGraw-Hill's Taxation of Business Entities, 2016 Edition, 7th Edition. McGraw-Hill Higher Education, 20150501. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.
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