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a. Taxable income b. Taxable income c. Taxable income d. Taxable income Amount

a. Taxable income b. Taxable income c. Taxable income d. Taxable income Amount

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determine 2021 taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense. Required: a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of $1,000, and nonrestaurant meals expenses of $3,000. b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of $52,000, and restaurant meals expenses of $3,000. c. Book income of $76,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $3,000 from a 10% owned domestic corporation. The corporation also has an $28,000 charitable contribution carryover. d. Book income of $129,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $7,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $6,000 and a capital gain of $2,500 in the current year. a. Taxable income b. Taxable income c. Taxable income d. Taxable income Amount
Transcribed Image Text:Determine 2021 taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense. Required: a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of $1,000, and nonrestaurant meals expenses of $3,000. b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of $52,000, and restaurant meals expenses of $3,000. c. Book income of $76,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $3,000 from a 10% owned domestic corporation. The corporation also has an $28,000 charitable contribution carryover. d. Book income of $129,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $7,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $6,000 and a capital gain of $2,500 in the current year. a. Taxable income b. Taxable income c. Taxable income d. Taxable income Amount
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