Question
D Corporation, a calendar year accrual basis corporation, reported $549,000 net income before tax on its financial statements in accordance with GAAP at then end
D Corporation, a calendar year accrual basis corporation, reported $549,000 net income before tax on its financial statements in accordance with GAAP at then end of the year. The corporation's financial records include:
1) $10,800 capital loss carryover. This year, it has a Code Sec. 1231 gain on the sale of $38,000.
2) D Corporation capitalized organizational costs of $6,900 and amortize the costs over 180 months. For book purposes, it expensed the costs.
Required:
Explain the above transactions according to the Internal Revenue Code and compute the taxable income
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