Boins Corporation, a calendar year relai S Corporation, incurred the following Section 1250 Gain-$12,000; Long-Term Capital Gain-$20,000; Cost Of Goods Sold-$42,000; Admini $17,000; Charitable Contribution-$10,000, Boins Corporation's Nonseparately Income for the year c O $78,000.

Boins Corporation, a calendar year relai S Corporation, incurred the following Section 1250 Gain-$12,000; Long-Term Capital Gain-$20,000; Cost Of Goods Sold-$42,000; Admini $17,000; Charitable Contribution-$10,000, Boins Corporation's Nonseparately Income for the year c O $78,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Prepare a calculation of taxable income for the following scenarios: S corporation owned by Henry, Iris, and Jasmine Wrigley Juice has the following income, expense, and loss items for the current year: Sales $850,000 Tax-exempt interest 40,000 Long-term capital gain 85,000 Short-term capital loss 35,000 Passive activity loss 20,000 Cost of goods sold 480,000 Depreciation 40,000 Section 179 expense 50,000 Other operating expenses 200,000 Net operating loss (from preceding year) 24,000
Monroe Corporation has the following income and expenses for 2019: Operating income 52,000 Operating expenses (20,000) Dividends received (<20% ownership) 30,000 Dividend received deduction (15,000) Charitable contribution (10,000) (a) How much of the charitable contribution can Monroe take this year? (b) How much, if any, must be carried over to the following year? (c) How much of a charitable contribution deduction can Monroe take if the $10,000 is a carryover from a 2014 gift?
Lakeview, a calendar year C corporation, reports the following income and expenses in the current year: Income from operations $400,000 Expenses from operations $280,000 Dividends received (10% ownership) $30,000 On July 15t of the year, Lakeview made a cash contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items). What is Lakeview's charitable contribution deduction for the year? Answer: $ . The charitable contribution deduction for corporations is limited to 10% of their taxable income for the year computed without regard to the charitable contribution deduction, net operating loss or capital loss carrybacks, and dividends received deduction. In this course, we are not applying the changes under the CARES Act.
30. Nagpapanggap Inc. had a pretax accounting income of P2,400,000 while the taxable net income before charitable contribution is P2,560,000 during the year. Below are items seen on the records of Nagpapanggap Inc.: * Gain from settlement of life insurance of officers and employees where the corporation is named the beneficiary, P50,000; * Dividend revenue received from a Manhid Corp., a domestic corporation, P78,000; * Dividend revenue received from a Pusong Bato Co., a foreign corporation, P56,000;
16. Erwin Company, a calendar year taxpayer, made only two purchases of depreciable personalty this year. The first purchase was five-year recovery property costing $312,800, and the second purchase was seven-year recovery property costing $574,000. Compute Erwin's first-year MACRS depreciation with respect to the personalty assuming that a. The first purchase occurred on February 2, and the second purchase occurred on June 18. b. The first purchase occurred on February 2, and the second purchase occurred on October 13.
A corporation receives no dividends for the year and has no carryovers into the year. Its taxable income before any charitable contribution was $80,000. It donates land held for several years worth $50,000 in which it has a basis of $15,000. What would the deductible amount of the contribution be if the taxable income of $80,000 was after deducting a capital loss carryforward of $5,000 into the current year.
Heron Corporation is a personal service corporation. It had $230,000 of net active income, $40,000 of portfolio income, and a $250,000 passive loss during the year. How much is Heron’s taxable income for the year? a. $20,000. b. $40,000 c. $270,000 d. $520,000
Danube Corporation operates a theatrical costume shop. Taxable income for the current year is $1,000,000. What is Danube's income tax liability? Oa. $0 Ob. $210,000 Oc. $370,000 Od. $390,000 Previclis Next
For 20X1, XYZ Corporation has a Gross Income of $ 1,000,000 and a total of Ordinary and Necessary Expenses of $ 600,000. Expenses include an item of $ 50,000 for Donations. All items are presented on a tax basis. The entity has not incurred net operating losses or received dividend income. Determine the amount of deductible donations for XYZ Corporation in 20X1. Select one: O a. S45,000 O b. S35,000 O c. SO O d. $50,000
Katt Co. began operations two years ago (Year 1) and recognized $37,000 in business income and $1,000 in taxable capital gains that year. Last year (Year 2) the company incurred a business loss of $25,000, a taxable capital gain of $2,000, and an allowable capital loss of $5,000. During the current year (Year 3) business income was $50,000, taxable capital gains were $4,000, and the company received $10,000 in dividends from a taxable Canadian corporation. Katt Co. utilizes any unused losses in the earliest years possible, Which of the following taxable incomes are correct after all carry-over adjustments have been made? Select one or more: a. Year 1: $13,000; Year 2: $0; Year 3: $61,000 b. Year 1: $12,000; Year 2: $0; Year 3: $52,000 O c. Year 1: $38,000; Year 2: ($28,000); Year 3: $64,000
Troy Ltd., at the end of 2023, its first year of operations, prepared a reconciliation between pre- tax accounting income and taxable income as follows: Pre-tax accounting income $300,000 Excess CCA claimed for tax purposes ... (600, 000) Estimated expenses deductible when paid $200,000 Use of the depreciable assets will result in taxable 500,000 Taxable income ... amounts of $200,000 in each of the next three years. The estimated expenses of $500,000 will be deductible in 2026 when settlement is expected to be made. The enacted tax rate is 25% and is to increase to 30%, starting in 2024. Instructions a) Prepare a schedule of the deferred taxable and deductible amounts. b) Prepare the required adjusting entries to record income taxes for 2023
1. George operates a business that generated revenues of $50 million and allocable taxable income of $560,000. Included in the computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income, and $180,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year if the business does not qualify under the gross income test? a) $168,000 b) $560,000 c) $612,000 d) $452,000 2. Mike started a calendar-year business on September 1stSeptember 1st of this year by paying 12 months of rent on his shop at $550 per month. What is the maximum amount of rent that Mike can deduct this year under each type of accounting method? a) $6,600 under the cash method and $6,600 under the accrual method b) $6,600 under the cash method and $2,200 under the accrual method c) $2,200 under the cash method and $2,200 under the accrual method d) $2,200 under the cash method and zero under the…