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Compute HC Incorporated's current-year taxable income given the following information relating to its 2021 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income
Compute HC Incorporated's current-year taxable income given the following information relating to its 2021 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. 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 HC'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. Assume the charitable donation is not a qualified contribution because HC Incorporated did not make the necessary election
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