During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short term capital loss of $10,000, and a long term capital gain of $25,000 How much is Sparrows income tax liability for the year Schedule M 1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporations income tax return as follows net income per books additions subtractions taxable income Which of the following items is an addition on Schedule M 1 Question answer options Tax depreciation in excess of book depreciation Proceeds of life insurance paid on death of key employee Excess of capital losses over capital gains Tax exempt interest Four individuals form Chickadee Corporation under $ 351 Two of these individuals, Jane and Walt, made the following contributions Fair Market Adjusted Basis Value From Jane Cash $360,000 $360,000 0 Patent 40,000 From Walt Equipment (depreciation claimed of $100,000) 240,000 370,000 Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments Jane must recognize income of $40,000 Walt has no income Neither Jane nor Walt recognize income Walt must recognize income of $130,000 Jane has no income Walt must recognize income of $100,000 Jane has no income

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During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of

During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,000. How much is Sparrows income tax liability for the year?

Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the corporations income tax return as follows: net income per books + additions subtractions = taxable income. Which of the following items is an addition on Schedule M-1?

Question answer options:

	Tax depreciation in excess of book depreciation.
	Proceeds of life insurance paid on death of key employee.
	Excess of capital losses over capital gains.
	Tax-exempt interest.

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Four individuals form Chickadee Corporation under $ 351. Two of these individuals, Jane and Walt, made the following contributions: Fair Market Adjusted Basis Value From Jane Cash $360,000 $360,000 0 Patent 40,000 From Walt Equipment (depreciation claimed of $100,000) 240,000 370,000 Both Jane and Walt receive stock in Chickadee Corporation equal to the value of their investments. Jane must recognize income of $40,000; Walt has no income. Neither Jane nor Walt recognize income. Walt must recognize income of $130,000; Jane has no income. Walt must recognize income of $100,000; Jane has no income