Problem $6$

Determine taxable income in each of the following instances. Assume that the corporation is a C

corporation and that book income is before any income tax expense.

a$.$ Book income of $$100,000$ including capital gains of $$4,000,$ a charitable contribution

of $$2,000,$ and travel and entertainment expenses of $$6,000.$

b$.$ Book income of $$184,000$ including capital losses of $$6,000,$ a charitable contribution

of $$24,000,$ and travel and entertainment expenses of $$6,000.$

c$.$ Book income of $$152,000$ including municipal bond interest of $$4,000,$ a charitable

contribution of $$10,000,$ and dividends of $$6,000$ from a $10\%$ owned domestic

corporation. The corporation also has a $$16,000$ charitable contribution carryover.

d$.$ Book income of $$258,000$ including municipal bond interest of $$4,000,$ a charitable

contribution of $$10,000,$ and dividends of $$14,000$ from a $70\%$ owned domestic

corporation. The corporation has a capital loss carryover of $$12,000$ and a capital gain of

$$5,000$ in the current year.