Determine the amount of taxable income/(loss) for the year 2020 assuming the taxpayer opted to use the optional standard deductions.
Determine the amount of taxable income/(loss) for the year 2020 assuming the taxpayer opted to use the optional standard deductions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The following are the records of a domestic corporation:
Description
2018
2019
2020
Gross sales
2,800,000.00 5,000,000,00 900,000.00
Cost of sales
2,300,000.00 1,500,000.00 350,000.00
Dividend - NRFC
150,000.00
40,000.00
Royalty income earned within
Philippines
50,000.00
100,000.00 80,000.00
Interest income on notes receivable
28,000.00 16,400.00
Business expenses
700,000.00 3,500,000.00 500,000.00
Determine the amount of taxable income/floss) for the year 2020 assuming the taxpayer
opted to use the optional standard deductions.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6be8d932-02ee-4b9e-b788-106302fb937e%2F969e27bb-91b3-4e16-aa7f-33f1a819cf8e%2Ft62542_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following are the records of a domestic corporation:
Description
2018
2019
2020
Gross sales
2,800,000.00 5,000,000,00 900,000.00
Cost of sales
2,300,000.00 1,500,000.00 350,000.00
Dividend - NRFC
150,000.00
40,000.00
Royalty income earned within
Philippines
50,000.00
100,000.00 80,000.00
Interest income on notes receivable
28,000.00 16,400.00
Business expenses
700,000.00 3,500,000.00 500,000.00
Determine the amount of taxable income/floss) for the year 2020 assuming the taxpayer
opted to use the optional standard deductions.
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