Question
Please someone help me. I asked this question before and the answer I was given was wrong. I need the correct answer tonight!! Please someone
Please someone help me. I asked this question before and the answer I was given was wrong. I need the correct answer tonight!! Please someone help me.
Please use the Student Template Assignment 2 template (linked at the bottom of the page) for the assignment below.
Tarass Inc. is an accrual-method calendar-year corporation. Tarass, Inc. did not qualify for the domestic production activities deduction. The following information has been provided about the activities occurring in 2013:
Life insurance proceeds from CFOs death | $100,000 |
Revenue from sales | $3,500,000 |
Key person life insurance premium | $6,800 |
Utilities cost | $275,000 |
Employee benefits expense | $65,000 |
Intangible drilling costs | $40,000 |
Mining exploration and development costs | $60,000 |
Interest income on qualified private activity, tax-exempt bonds | $25,000 |
Interest paid on loan to purchase tax-exempt bonds | $25,000 |
Alternative Minimum NOL Deduction | $35,000 |
Rental income received and earned in 2013 | $5,000 |
Rental income received but not earned in 201 | $10,000 |
Overhead costs : Expensed in 2013 | $5,000 |
Overhead costs expensed for financial reporting in 2012 | $10,000 |
Charitable contributions | $315,000 |
Using Excel, prepare a reconciliation. Set up the Excel spreadsheet using the example below:
Line Item *a | 2013 Taxable Income *b: I OR D OR N | Adjustments OR Preferences *c: | AMTI EFFECTS *d: Positive(P) Negative (N) Either (E) | |
Adjustments (A) Neither(N) |
Preferences (P) |
NOTE *a: Line Item is each activity recorded for Tarass in 2013.
NOTE *b: 2013 Taxable Income refers to if the line item would increase, decrease, or have no effect on Tarasss book income under GAAP. Put an I if the line item would increase 2013 taxable income OR D if the item would decrease 2013 taxable income OR N if the line item would neither increase nor decrease 2013 taxable income.
NOTE *c: Adjustments OR Preferences refers to if the line item is an adjustment or a preference. Please place an A if the line item is an adjustments OR a P if the line item is a preference OR an N if the line item is neither an adjustment nor a preference.
NOTE *d: AMTI Effects refers to if the line item would have a positive, negative, or no effect on the Alternative Minimum Taxable Income. Please place a (P) for a positive affect OR (N) for a negative effect OR an (E) if the line item could have either a positive or negative effect. If the line item is not applicable to AMTI, leave the block blank.
NOTE: The student might want to consult with the IRS website, downloading the instructions for Form 4626 @http://www.irs.gov/pub/irs-pdf/i4626.pdf. Form 4626 can be downloaded @ http://www.irs.gov/pub/irs-pdf/f4626.pdf
APPLICABLE | |||
2013 Taxable Income | Adjustments OR Preferences | AMTI AFFECTS | |
Line Item | "I" OR "D" OR "N" | "A" OR "P" OR "N" | "P" OR "N" OR "E" |
Life ins. proceeds - CFOs death | |||
Revenue from sales |
|
| |
Key-person life ins. premium |
|
|
|
Utilities cost |
|
| |
Employee benefits expenses |
|
| |
Intangible drilling costs |
|
|
|
Mining exploration and development costs |
|
|
|
Interest income on qualified private activity tax-exempt bonds |
|
|
|
Interest paid on loan to purchase tax exempt bonds |
|
|
|
Alternative Minimum NOL Deduction |
|
|
|
Rental income received & earned in 2013 |
|
|
|
Rental income received but not earned in 2013 |
|
| |
Overhead cost - Expensed in 2013 |
|
| |
Overhead cost - Expensed in 2012 |
|
| |
Charitable contributions |
|
|
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