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Corporate Tax Computation. LBC corporation reports book income of $2,000,000. Included in the $2,000,000 is $15,000 of tax-exempt interest income. LBC reported $1,345,000 in ordinary
- Corporate Tax Computation. LBC corporation reports book income of $2,000,000. Included in the $2,000,000 is $15,000 of tax-exempt interest income. LBC reported $1,345,000 in ordinary and necessary business expenses. What is LBCs taxable income for the year? What is their tax?
$2,000,000 - $15,000 - $1,345,000 = $640,000 is their taxable income
- What estimated payments should they make if they had the following income for each corresponding cumulative income -- $100,000 (Q1), $100,000 (Q2), $500,000 (Q3), and $700,000 (Q4).
| Period | Taxable Income | Annualized Factor | Annual Estimated Taxable Income | Estimated Tax | % Required to be paid | Required Cumulative Payment | Prior Payments | Required Est. Tax Payment |
| First |
| 12/3 |
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| Second |
| 12/3 |
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| Third |
| 12/6 |
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| Fourth |
| 12/9 |
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