Assume ACME Corporation makes an appropriate and timely election under 248(c) and the related Regulations. What is the maximum organizational expense ACME may write off for tax year 2013?

1. In the current year, Bender Corporation (a C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Bender had a long-term capital gain of $55,000 and a short-term capital loss of $40,000. Compute Bender's taxable income and tax for the year. 480,000 OP IN- 390,000 OP EX = 90,000 + 15,000 = 105,000 55,000 gain - 40,000 loss = 15,000 105,000 will be taxed 7,500 + 6,250 + + 8,500 + 1,950 = $24,200 tax owed Over $0 50,000 75,000 100,000 2. But not over $50,000 75,000 100,000 335,000 Tax is 15% $7,500 + 25% 13,750 + 34% 22,250 + 39% Of amount over $0 50,000 75,000 100,000 During the current year, Carlson Corporation (a calendar year taxpayer) had the following income and expenses: Income from operations Expenses from operations Qualifying dividends from domestic corporation in which Carlson owns a 40% interest NOL carryover from prior year $350,000 225,000 27,000 2,000 On October 1, Carlson Corporation made a contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items). Determine Carlson Corporation's charitable contribution deduction for the current year. 350,000 - 225,000 + 27,000 + 2,000 = 154,000 x 0.1 = 15,400 CC charitable contribution deduction 3. ACME Corporation, an accrual basis taxpayer, was formed and began operations on October 1, 2013. The following expenses were incurred during the first tax year (October 1 to December 31, 2013) of operations: Expenses of temporary directors and of organizational meetings Fee paid to the state of incorporation Accounting services incident to organization Legal services for drafting the corporate charter and bylaws Expenses incident to the printing and sale of stock certificates $15,000 8,500 13,500 16,000 5,000 $58,000 Assume ACME Corporation makes an appropriate and timely election under 248(c) and the related Regulations. What is the maximum organizational expense ACME may write off for tax year 2013? 4. The following information for 2013 relates to Weekly Corporation, a calendar year, accrual method taxpayer. Net income per books (after-tax) Federal income tax expense per books Tax-exempt interest income MACRS depreciation in excess of straight-line depreciation used for financial statement purposes Excess of capital loss over capital gains Nondeductible meals and entertainment Interest on loan to purchase tax-exempt bonds Based on the above information, use Schedule M1 of Form 1120, which is available on the IRS $174,100 86,600 4,500 7,200 9,400 5,500 1,100