Question
Lopez results for the current year are are as follows: Gross Revenue- $600,000 Operating Expenses-$200600 Dividend Income (Stock ownership 9%)- 2000 a. How much is
Lopez results for the current year are are as follows:
Gross Revenue- $600,000
Operating Expenses-$200600
Dividend Income (Stock ownership 9%)- 2000
a. How much is Lopez's taxable income for year 2014?
b. Assuming your answer to question A was 400,000, how much is the corporations income tax? The corporation is not a professional service corporation.
C. Included in the deducation of operating expenses in the previous question was a deduction of 10,000 (this is the deductible portion) for meals. There are no other adjustments not indicated here and in the previous question. Recall that E&P is the abilitly of the corporation to make distrubutions, after tax. How much is Jeff's "earning and profits" for 2014?
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