Mondial Corporation had gross revenue of $980,000, cost of goods sold of $420,000, operating expenses of $380,000,
Question:
Mondial Corporation had gross revenue of $980,000, cost of goods sold of
$420,000, operating expenses of $380,000, and $4,000 of dividends received from a 40% owned company. Its operating expenses included the following:
$6,000 of life insurance premiums on which it was the beneficiary
$22,000 of meals and entertainment expenses
$30,000 of charitable contributions
a. Determine Mondial Corporation’s taxable income.
b. Determine Mondial Corporation’s income tax liability.
c. Determine Mondial Corporation’s book income if book depreciation is
$15,000 less than tax depreciation.
AppendixLO1
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Related Book For
Taxation For Decision Makers 2008
ISBN: 9780324654110
2nd Edition
Authors: Shirley Dennis-Escoffier, Karen A. Fortin
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