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Can someone help me fix this answer? Im not sure what I am doing wrong. Determine taxable income in each of the following instances. Assume

Can someone help me fix this answer?

Im not sure what I am doing wrong.

Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense.

c - Book income of $152,000 including municipal bond interest of $4,000, a charitable contribution of $10,000, and dividends of $6,000 from a 10% owned domestic corporation. The corporation also has a $16,000 charitable contribution carryover.

c) Non taxable bond interest income need to be deducted from book income for calculating taxable income. To determine the charitable contribution adjustment, we must first determine taxable income before charitable contribution. This amount is [$152,000 - $4,000 for interest - ($6,000*70%) for DRD + $10,000 charitable contribution] $153,800. Thus the corporation is allowed to take an $15,380 ($153,800*10%) charitable contribution. The corporation paid $10,000 in the current year and this amount is included in book income. Thus the corporation can take an additional $5,380 ($15,380-$10,000) in charitable contributions.

The taxable income is calculated as follows:-

Taxable income = Book income-Non taxable interest income-Charitable contribution adjustment-DRD adjustment

= $152,000-$4,000-$5,380-(70% of $6,000) = $138,420

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