TAX ACTIVITY #1

ABX Company, a C Corporation, was formed in 2015 and reported net income in each year of its operation. The company had net capital gains and losses as follows:

How should the corporation report the 20,000 loss in 2019?

TAX ACTIVITY #2

In 2019, Company B has taxable income of $50,000 prior to consideration of any net operating loss. In 2018, the Company incurred a net operating loss of $20,000. Determine 2019 taxable income.

In 2019, Company C has taxable income of $35,000 prior to consideration of any net operating loss. In 2018, the Company incurred a net operating loss of $30,000. Determine 2019 taxable income.

TAX ACTIVITY #3

Dividend of $10,000 from a 45% owned corporation; taxable income before DRD of $50,000. What is the amount excluded?

Dividend of $19,000 from a 15% owned corporation; taxable income before DRD of $75,000. What is the amount excluded?

Dividend of $8,000 from a 10% owned corporation; taxable income before DRD of $7,000. What is the amount excluded?

TAX ACTIVITY #4: Complete Form M-1

RNP, Inc. has book income of $120,000 properly determined in accordance with financial accounting principles. The following information is also available:

The company received a $10,000 dividend from a large publicly traded domestic corporation. (owns less than 20%)

Income tax expense on the financial statements was $30,000.

Depreciation expense on the financial statements is $25,000 less than depreciation expense determined using tax laws.

The company received life insurance proceeds of $15,000.

Charitable contributions of $20,000 were made. (the allowable amount is $13,000.)

Determine the taxable income of RNP, INC.