Question
ACCT553 Week 5 Homework (TCOs C and F) _________________________________________________________ Please provide a response for each section in the space provided below. When finished, submit to
ACCT553
Week 5 Homework
(TCOs C and F)
_________________________________________________________
Please provide a response for each section in the space provided below.
When finished, submit to the assignment.
Worth 135 points
In Week 4, we learned to apply concepts and principles to measure taxable income derived from a business activity. We have identified the C corporation as a basic legal form of conducting business. Apply what you have learned in this course through Week 5 to review the facts provided below and address the four questions that follow. Where a calculation is required, please show your work for full credit (partial credit may also be awarded).
Facts:
- Greco Glass Products ("GGP") is a C Corporation.
- GGP had gross revenue from sales in 2017 of $2,300,000.
- GGPs cost of goods sold for the 2017 sales was $952,000.
- GGP incurred a long-term capital loss in the amount of $48,000.
- GGP had a capital loss carryover from 2016 of $15,000.
- GGP made cash charitable contributions totaling $135,000.
- GGP made contributions to Ronald Stumps presidential campaign in the amount of $50,000.
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Please Check my answers
Required:
- What is GGPs taxable income for 2018? Show your work. (60 points)
Gross Revenue $2,300,000
Cost of Goods Sold $952,000
Charitable Contributions $134,800
Taxable Income $1,213,200
(2,300,000-952,000) = 1,348,000 x 10% = $134,800 charitable contribution
GGP made contributions to Ronald Stumps presidential campaign in the amount of $50,000, which are not tax deductible.
Capital loss cannot be deducted.
- Does GGPs have an NOL carryforward to 2019? If so, how much? (25 points)
Zero. GGPs does not have any carryforward
- Does GGPs have a capital-loss carryforward to 2019? If so, how much? (25 points)
Capital-Loss carryforward: (48,000 + 15,000) = $63,000
- Does GGPs charitable contribution carry over to 2019? If so, how much? How long can it be carried over? (25 points)
Charitable contributions carryover (135,000 134,800) = $200 carried over for 5years.
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