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Fee Income 2,000,000 Interest Income 25,000 Total Revenue 2,025,000 Salaries and wages 600,000 Rent 24,000 Charitable contributions 1,000 Utilities 2,000 Office Supplies 1,500 Autotmobile Expenses

Fee Income 2,000,000
Interest Income 25,000
Total Revenue 2,025,000
Salaries and wages 600,000
Rent 24,000
Charitable contributions 1,000
Utilities 2,000
Office Supplies 1,500
Autotmobile Expenses 5,000
Telephone 3,500
Repairs and Maintenance 800
Amortization-organization expense 30,100
Depreciation 8,500
Fee to Harry 5,000
Employee Benefits 60,000
Postage 200
Entertainment Expenses 3,500
Insurance 5,000
Litigation expense 10,000
Interest Expense 500
Total Expenses 760,600
Net Income 1,264,400
Less Separately stated items

Calculate Taxable Income

Taxable Income Check Figure should be 1,234,326

Four adjustments are needed to Book income in order to get taxable income

Separately stated items subtracted from book income should total 24,000

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