Hi Vjvgoe,

I need help with this problem, this is for taxation for business. Please reply soon as I only have until Sunday may 14th as the deadline.

XYZ Is a calendar-year corporation. For 2016, It reported the following Information In Its current year audited Income statement. Notes with Important tax Information are provided below. XYZ corp. lnoome statement Book For current year lnoome Revenue from sales $40,000,000 Cost of Goods Sold (27,0 00,000) Gross prot $ 13,000,000 Other Income: Income from Investment in corporate stock 300,0001 Interest Income 20,0002 Capital gains (losses) (4,000) Gain or loss from dIsposItion of xed assets 3,0003 MIscellaneous income 50,000 Gross Income $ 13,369,000 Expenses: Compensation (7,500,000)4 Stock option compensation (200,000)5 Advertising (1,350,000) Repairs and Maintenance (75,000) Rent (22,000) Bad Debt expense (41,000)5 Depreciation (1,400,000)7 Warranty expenses (70,000)3 Charitable donations (500,000)9 Meals and entertainment (18,000) Goodwill impairment (30,000f0 Organizational expenditures (44,000)\" Other expenses (140,000)12 Total expenses $ (11,390,000) Income before taxes $ 1,979,000 Provision for income taxes (720,000)13 Net Income aer taxes $ 1,259,000\" Notes: 1. XYZ owns 30 percent ofthe outstanding Hobble Corp. (HC) stock. Hobble Corp. reported $1,000,000 of Income for the year. XYZ accounted for its Investment In HC under the equity method and It recorded in pro rata share of HC's earnings for the year. HC aIso distributed a $200,000 dividend to XYZ. 2. Of the $20,000 Interest Income, $5,000 was from a City of Seattle bond (Issued in 2014) that was used to fund pu bllc activities, $1000 was from a Tacoma City bond (Issued In 2014] used to fund private activities, $6,000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market account. 3. This gain Is from equipment that XYZ purchased in February and sold In December (I.e., It does not qualify as 51231 gain}. 4. This Includes total officer compensation of $2,500,000 (no one ofcer received more than $1,000,000 compensation}. 5. This amount Is the portion of incentive stock option compensation that was expensed during the year (recipients are officers]. 6. XYZ actualiy wrote off$27,000 of its accounts receivabie as uncoIIectlble. 7. Regular tax depreciation was $1,900,000 and AMT (and ACE) depreciation was $1,700,000. 8. In the current year, XYZ dId not make any actual payments on warranties It provided to customers. 9. XYZ made $500,000 ofcash contributions to qualified charities during the year. 10. On July1 ofthls year XYZ acquired the assets of another business. In the process It acquired $300,000 of goodwill. At the end ofthe year, XYZ wrote 011 $30,000 ofthe goodwlIl as Impaired. 11. XYZ expensed all of its organizational expenditures for book purposes. XYZ expensed the maximum amount of organizationai expenditures allowed for tax purposes. 12. The other expenses do not contain any items with book-tax differences. 13. This Is an estimated tax provision (federal tax expense] for the year. Assume that XYZ is not subject to state Income taxes. 14. XYZ calculated that Its domestic production activities deduction (DPAD) Is $90,000. This amount Is not Included on the audited Income statement numbers. Estimated tax information: XYZ made four equal estimated tax payments totaling $480,000. Assume for purposes of estimated tax liabilities, XYZ was in existence In 2015 had it reported a tax liability of $800,000. During 2016, XYZ determined Its taxabie income at the end of each of the four quarters as follows: Cumulative taxable Quarter-end Income (loss) First $ 350,000 Second $ 800,000 Third $ 1,000,000 Finally, assume that XYZ is not a Iarge corporation for purposes of estimated tax calculations. {Do not round intermediate calculations. Round your answers to the nearest dollar amount.) :3. Compute XYZ's taxable income. : References eBook 8. Resources Comprehensive Problem Learning Objective: 16-01 Describe the corporate income tax formula, compete and contrast the corporate tax formula to the individual tax formula, and discuss tax considerations relating to corporations' accounting periods and accounting methods. Learning Objective: 16-03 Describe a corporation's tax return reporting and estimated tax payment obligations. \fc. Complete XYZ's Schedule M-1. (Enter all amounts as positive numbers.) n Net inoome (loss) per books a Federal income tax provision Excess of capital losses over capital gains Income subject to tax not recorded on books this year {itemize) Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Contributions carryover c. Travel and entertainment Stock option com pensation [incentive stock options] Bad debt expense Goodwill impairment Organizational expenditures Total ti 0 . Income reoorded on books this year not Included on this return {Itemize} Tax-exempt interest Income from Investment "1 corporate stock \"ed Deductions on this return not charged against book inoome this year [itemize]: a. Depreciation b. Contributions carryover Total 0 Income 5 D value: 10.00 point e. lfthe February drill bits' original basis was 32.391500, what is the maximum amount of 179 expense Dain may deduct for the year? -: References Problem eook 0. Resources Learnlng Objective: 10-02 Determine the applicable cost recovery (depreciation) ilfe, malhod. and convention for tangible personal and heal property and calculate the deduction allowable under basic MACRS. hiked hfnrllldlon c. Complete XYZ's Schedule M-1. (Enter all amounts as positive numbers.) Answer Is not complete Net income (loss) per books Federal income tax provision Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize) Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Contributions carryover 277.930.} 9.00M Stock option compensation {incentive stock options) 200.00M Bad debt expense 14,000.} mmw Goodwill impairment 211.000" Organizational expenditures $6.40!)" Total $ 2.610.360 . Income recorded on books this year not included on this retum {itemize}: Tax-exempt interest .4 Income from investment in corporate stock Deductions on this retum not charged against book income this year (itemize): mm b. Contributions carryover DPAD Qw DRD mom 1.908.360 c. Complete XYZ's Schedule M-1. (Enter all amounts as positive numbers.) Answer Is not complete Net income (loss) per books Federal income tax provision Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize) Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Contributions carryover 277.930.} 9.00M Stock option compensation {incentive stock options) 200.00M Bad debt expense 14,000.} mmw Goodwill impairment 211.000" Organizational expenditures $6.40!)" Total $ 2.610.360 . Income recorded on books this year not included on this retum {itemize}: Tax-exempt interest .4 Income from investment in corporate stock Deductions on this retum not charged against book income this year (itemize): mm b. Contributions carryover DPAD Qw DRD mom 1.908.360 value: 10.00 point e. lfthe February drill bits' original basis was 32.391500, what is the maximum amount of 179 expense Dain may deduct for the year? -: References Problem eook 0. Resources Learnlng Objective: 10-02 Determine the applicable cost recovery (depreciation) ilfe, malhod. and convention for tangible personal and heal property and calculate the deduction allowable under basic MACRS. hiked hfnrllldlon c. Complete XYZ's Schedule M-1. (Enter all amounts as positive numbers.) Answer Is not complete Net income (loss) per books Federal income tax provision Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize) Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Contributions carryover 277.930.} 9.00M Stock option compensation {incentive stock options) 200.00M Bad debt expense 14,000.} mmw Goodwill impairment 211.000" Organizational expenditures $6.40!)" Total $ 2.610.360 . Income recorded on books this year not included on this retum {itemize}: Tax-exempt interest .4 Income from investment in corporate stock Deductions on this retum not charged against book income this year (itemize): mm b. Contributions carryover DPAD Qw DRD mom 1.908.360 c. Complete XYZ's Schedule M-1. (Enter all amounts as positive numbers.) Answer Is not complete Net income (loss) per books Federal income tax provision Excess of capital losses over capital gains Income subject to tax not recorded on books this year (itemize) Expenses recorded on books this year not deducted on this return (itemize): a. Depreciation b. Contributions carryover 277.930.} 9.00M Stock option compensation {incentive stock options) 200.00M Bad debt expense 14,000.} mmw Goodwill impairment 211.000" Organizational expenditures $6.40!)" Total $ 2.610.360 . Income recorded on books this year not included on this retum {itemize}: Tax-exempt interest .4 Income from investment in corporate stock Deductions on this retum not charged against book income this year (itemize): mm b. Contributions carryover DPAD Qw DRD mom 1.908.360