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For 2019 Bagco has gross income of $100,000 and deductions of $160,000 for regular tax purposes. a. What are the tax consequences to Bagco in
For 2019 Bagco has gross income of $100,000 and deductions of $160,000 for regular tax purposes.
a. What are the tax consequences to Bagco in the current year CY?
b. Would the result have any impact on Bagco's tax liability in the prior year (PY) if it had taxable income in that year of $50,000.
c. Suppose that for the following year (CY+1) Bagco has taxable income from all activities in that year of $30,000. Assume the tax rate is a flat 21% of taxable income. How much federal tax will Bagco pay in that year?
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