Complete this question by entering your answers in the tabs below. a$.$ and b$.$ Compute HC Incorporated's current$-$year taxable income given the following information relating to its current$-$year $(2023)$

activities. Also, compute HC$\text{'}$s Schedule M$-1$ assuming that HC$\text{'}$s federal income tax expense for book purposes is $$30,000.$ Use Exhibi

$16-7.$

Required:

Gross profit from inventory sales of $$310,000($no book$-$tax differences$).$

Dividends HC received from $28$ percent$-$owned corporation of $$120,000($this is also $H{C}^{\text{'}}\text{'}$s pro rata share of the corporation's

earnings$).$

Expenses other than DRD$,$ charitable contribution $($CC$),$ and net operating loss $($NOL$)$ are $$300,000($no book$-$tax differences$).$

NOL carryover from prior year of $$12,000.$

Cash charitable contribution of $$50,000.$

Complete this question by entering your answers in the tabs below. Required A

Required B

Compute HC Incorporated's current$-$year taxable income given the following information relating to its current$-$year $(2023)$ activities.

Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

$\backslash$table$[[\backslash$table$[[$Description$],[$Gross profit$]],\backslash$table$[[$Book Income$],[($Dr$)$ Cr$]],\backslash$table$[[$Book$-$tax$],[$adjustments$],[($Dr$)]],\backslash$table$[[$Book$-$tax$],[$adjustments$],[$Cr$]],\backslash$table$[[$Taxable Income$],[($Dr$)$ Cr$]]],[310,000,$$$,310,000],[$Other income:$],[$Dividend income,$120,000,,,,120,000],[$Gross Income,$430,000,,,$$$,430,000],[$Expenses:$],[$Business expenses other than DRD$,$ CC$,$ and NOL,$(300,000),,,,(300,000)],[$Federal income tax expense,$(30,000),,30,000,,],[\backslash$table$[[$Total expenses before charitable contribution, NOL, and DRD$],[$deduction$]],(330,000),,,,(300,000)],[$Income before charitable contribution, NOL and DRD$,100,000,,,$$$,130,000],[$NOL carryover from prior year,$0,(12,000),,,(12,000)],[\backslash$table$[[$Taxable income for charitable contribution limitation purposes$],[($modified taxable income$)]],,,,$$$,118,000],[$Charitable contributions,$(50,000),,,,(11,800)],[$Taxable income before DRD$,,,,$$$,106,200],[$Dividends received deduction $($DRD$),0,,,,],[$Book$/$Taxable income,$50,000,$$$(12,000),$$$30,000,$$$,106,200]]$

Required ARequired B

Compute HC Incorporated$$s current$-$year taxable income given the following information relating to its current$-$year $(2023)$ activities.

Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.

Description Book Income $($Dr$)$ Cr Book$-$tax adjustments $($Dr$)$ Book$-$tax adjustments Cr Taxable Income $($Dr$)$ Cr

Gross profit $$310,000$ $$310,000$

Other income:

Dividend income $120,000120,000$

Gross Income $$430,000$ $$430,000$

Expenses:

Business expenses other than DRD$,$ CC$,$ and NOL $(300,000)(300,000)$

Federal income tax expense $(30,000)30,000$

Total expenses before charitable contribution, NOL, and DRD deduction $(330,000)(300,000)$

Income before charitable contribution, NOL and DRD $$100,000$ $$130,000$

NOL carryover from prior year $(12,000)(12,000)$

Taxable income for charitable contribution limitation purposes $($modified taxable income$)$ $$118,000$

Charitable contributions $(50,000)(11,800)$

Taxable income before DRD $$106,200$

Dividends received deduction $($DRD$)0$

Book$/$Taxable income $$50,000$ $$(12,000)$ $$30,000$ $$106,200$

Need help with Dividends answer.