You have been engaged by Nirvana, Inc., the happiest little corporation you know. They want you to tell them what their tax liability is. Please do a tax computation on the page provided. (Do not do a tax return.) The following information applies to Nirvana, Inc. for their 2020 tax year: Income: Revenue Bank Interest Municipal Bond Interest Dividends (Nirvana's ownership is 1%) Dividends (Nirvana's ownership is 50%) Capital Losses Rental Income $220,000 600 300 1,000 3,000 (5,000) 16,000 50,000 29,000 600 300 Expenses Compensation of Officers Other Wages Repairs Interest Expense - Corporate credit Cards Meals (100%) Telephone Advertising Depreciation - GAAP (MACRS is 6000) Professional Fees Last Year's State income tax Last Year's Federal Income Tax 4,000 3,200 700 8,000 600 1,800 1,000 Compute the corporate taxable income and the tax using the 2020 corporate income tax The corporate Tax Rate is 21% |