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The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed the following selected financial information for the year 2021:

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The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed the following selected financial information for the year 2021: Gross receipts Cost of goods sold Dividends received (less than 20%-owned) Interest Income Interest Expense Depreciation Other Operating Expenses $ 25,800,000 21,300,000 250,000 150,000 1,550,000 575,000 1,500,000 XYX is planning a major expansion project for the year 2022 and is in the process securing the needed financing. Financing approval is dependent upon the company averaging Net Income of at least $950,000 for the last three years. Net income for 2019 and 2020 was $875,000 and $925,000 respectively. Your boss the Vice President of Financial Operations has asked you to use the numbers above and calculate Net Income for 2021 to see if it meets or exceeds the target of $950,000. You are not required to use form 1120, but I have included to give you an idea on how to format your solution. The use of a excel work sheet maybe useful. + Net Income mentioned in the project is Net Income after taxes. + You must use all available tax deductions unique to corporations in arriving at taxable income (see chapter 3). + The corporate tax rate must be applied to taxable income to determine income taxes

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