Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you create an income statement using the information in the two pictures? Taxable Income Taxable Taxable Income Income Charitable DRD Gross Sales from operations

Could you create an income statement using the information in the two pictures?

image text in transcribed

image text in transcribed

Taxable Income Taxable Taxable Income Income Charitable DRD Gross Sales from operations Cost of goods sold (part g) Selling and Administrative Expenses Administrative Wages (non-Shareholder) Officer Wages (shareholders) (part a) Dividend income - 10% owned Interest income Depreciation (part f) 4,100,000 4,100,000 4,100,000 (2,373,543) (2,373,543) (2,373,543) (590,000) (590,000) (590,000) (750,000) (750,000) (750,000) (655,000) (655,000) (655,000) 150,000 150,000 150,000 65,000 65,000 65,000 (526,389) (526,389) (526,389) part (b) sec. 291 building sale 71,197 71,197 71,197 Sec. 1245 part (d) part (e) Crane Forklift 87,515 27,637 87,515 27,637 87,515 27,637 87,515 27,637 Sec. 1231 part (b) Building Land Land 934,786 (50,000) 225,000 Part (c) 175,000 175,000 175,000 Net Sec. 1231 Lookback Loss Application Sec. 1231 treated as LTCG 1,109,786 (175,000) 934,786 STCL Carry forward 2011 2015 Net Capital Gain 0 too old (375,000) 559,786 559,786 559,786 559,786 Net operating loss carry forward 2011 (45,000) 2015 (25,000) (45,000) (25,000) (45,000) (25,000) Net operating loss carry forward 2011 (45,000) 2015 (25,000) (45,000) (25,000) (45,000) (25,000) 271,203 27,120 (27,120) (27,120) Taxable income for Charitable Deduction Charitable Limitation Charitable Contribution 165,000 CF from 2015 25,000 Used in 2019 (27,120) CF to 2020 162,880 314,083 Taxable income for DRD DRD Percent 50% Taxable income limit DRD Tentative Amount 157,042 75,000 (75,000) 169,083 Taxable income Tax rate = 21% Total tax 35,507

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Margins Of Error In Accounting

Authors: D. Myddelton

1st Edition

0230219918, 9780230219915

More Books

Students also viewed these Accounting questions

Question

14.5 Describe how accidents at work can be prevented.

Answered: 1 week ago