1. Alsop Corporation, a calendar year C Corp, had the following income and expenses in 2022:

Income from Operations $335,000

Expenses from Operations 185,000

Dividends Received (30% ownership) 60,000

Capital Loss Carry back 22,000

Charitable Contribution 50,000

a. What is Alsop Corporations charitable deduction for 2022?

b. What happens to the portion (if any) that is not deducible?

2. ABC is a sole proprietorship owned by Clark. The companys records show the following:

Sales Revenue 402,000

Interest on State of Kansas bonds 4,000

Operating Expenses 235,000

Depreciation book purposes 15,000

Depreciation tax purposes 21,000

Loss on sale of truck to Clarks granddaughter 2,000

Fines to the U.S. govt. for violation of emission standards 1,000

1. Compute ABCs net income per books before tax.
2. Compute ABCs taxable income.

3. Which of the following are related parties under 267?

I. Taxpayers Cousin

II. Taxpayers 80%-owned corporation

III. Taxpayers 45%-owned corporation

IV. Taxpayers Wife

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4. VanVoorst Realty, Inc. a real estate brokerage firm and calendar year C Corp, had the following income and expenses:

Commissions income 173,000

Commission Expense to non-brokers

(illegal under state law) 10,000

Commission Expense to legal brokers 19,500

Travel and Transportation 9,000

Supplies 4,000

Office Rent 10,500

Bribes to zoning commissioners 2,500

How much taxable income must VanVoorst Realty, Inc. report from this business?

5. Annika sold stock in IBM Corporation (basis of $80,000) to her brother Daniel for $35,000, the stocks FMV.

1. What are the tax consequences to Annika?
2. What are the tax consequences to Daniel if he sells the stock to an unrelated party for $100,000? For $40,000?