Question
The following information for 2020 relates to Sparrow Corporation, a calendar year, accrual method taxpayer. Net income per books (after-tax) $205,050 Federal income tax per
The following information for 2020 relates to Sparrow Corporation, a calendar year, accrual method taxpayer.
| Net income per books (after-tax) | $205,050 |
| Federal income tax per books | 55,650 |
| Tax-exempt interest income | 4,500 |
| MACRS depreciation in excess of straight-line depreciation used for financial purposes | 7,200 |
| Excess of capital loss over capital gains | 9,400 |
| Nondeductible meals and entertainment | 5,500 |
| Interest on loan to purchase tax-exempt bonds | 1,100 |
Based on the above information, what is Sparrows taxable income for 2020?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
