Question
C Corp. reports the following information for 2018: Net income per books $700,000 Federal income tax expense 186,075 State tax expense 60,000 Net capital loss
C Corp. reports the following information for 2018: Net income per books $700,000 Federal income tax expense 186,075 State tax expense 60,000 Net capital loss (9,000) Tax exempt interest income 12,000 Excess charitable contributions 8,000 Book depreciation in excess of tax depreciation 14,000 Installment sale proceeds (a) 20,000 Unappropriated retained earnings-1/1/18 900,000 Dividends paid in 2018 76,000 (a) The installment sale proceeds were from a sale in 2017: Sales price $100,000-Adjusted basis $75,000= Gross profit $25,000. C Corp. will receive five year annual payments of $20,000. 1. Based on the above information, complete Form 1120 Schedules M-1, M-2. You may use a tax return schedule to present your answer. 2. Briefly indicate the major differences between Form 1120 Schedules M-1 and M-3.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started