Question
Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income
Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense. (A). Book income of $52,000 including capital gains of $1,500, a charitable contribution of $1,100, and travel and entertainment expenses of $4,000. (b). Book income of $94,000 including capital losses of $2,500, a charitable contribution of $13,000, and travel and entertainment expenses of $1,100. (C). Book income of $77,000 including municipal bond interest of $1,050, a charitable contribution of $4,100, and dividends of $1,200 from a 10% owned domestic corporation. The corporation also has an $6,100 charitable contribution carryover. (D). Book income of $131,000 including municipal bond interest of $1,250, a charitable contribution of $3,550, and dividends of $5,600 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $4,550 and a capital gain of $1,100 in the current year.
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