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Hi guys, I need help with this question. Thank you so much. Assume the following operating results for 2022: Sales $ 1,500,000 Interest income from
Hi guys, I need help with this question. Thank you so much.
Assume the following operating results for 2022:
| Sales | $ 1,500,000 |
| Interest income from a bank | $ 3,200 |
| Royalties | $ 60,000 |
| Loss from sale of investment | $ (7,000) |
| Cost of goods sold | $ 622,000 |
| Salaries | $ 450,000 |
| Rent | $ 144,000 |
| Maintenance | $ 24,000 |
| Utilities | $ 58,000 |
| EPA penalty | $ 1,000 |
| Depreciation | ? |
| Charitable contribution | $ 30,000 |
| Payment to Sam for retirement* | $ 15,000 |
*payment considered a guaranteed payment if the entity is a partnership
The companys only depreciable asset is equipment (useful life of 5 years) which will be purchased in 2022 for $100,000.
The only asset sold was an investment purchased on 2/2/22 for $28,000 and sold on 11/4/22 for $21,000
- What is the taxable income if the entity is a C Corporation?
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