Do a Corporate Tax computation

You have been engaged by Nirvana, Inc., the happiest little corporation you know. They want you to tell them what their tax liability is. Please do a tax computation on the page provided. (Do not do a tax return.)

The following information applies to Nirvana, Inc. for their 2018 tax year:

Income:

Revenue $220,000

Bank Interest 600

Municipal Bond Interest 300

Dividends (Nirvanas ownership is 1%) 1,000

Dividends (Nirvanas ownership is 50%) 3,000

Capital Losses (5,000)

Rental Income 16,000

Expenses

Compensation of Officers 50,000

Other Wages 29,000

Repairs 600

Interest Expense Corporate credit Cards 300

Meals (100%) 4,000

Telephone 3,200

Advertising 700

Depreciation GAAP (MACRS is 6000) 8,000

Professional Fees 600

Last Years State income tax 1,800

Last Years Federal Income Tax 1,000

Compute the corporate taxable income and the tax using the 2018 corporate income tax rates.

DO NOT PREPARE A FORMAL TAX RETURN. JUST DO A TAX CALCULATION ON THE NEXT PAGE!!!