Compute MV Corporation's 2022 taxable income given the following information relating to its year 1 activities. Also, compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. Use Exhibit 16-7. Required: Gross profit from inventory sales of $500,000 (no book-tax differences). Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV's pro rata share of the distributing corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book-tax differences). NOL carryover from 2021 of $10,000. Cash charitable contribution of $120,000. Complete this question by entering your answers in the tabs below. Required A Required B Compute MV Corporation's 2022 taxable income given the following information relating to its year 1 activities. Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Description Gross profit Other income: Dividend income Gross Income Expenses: Business expenses other than DRD, CC, and NOL Federal income tax expense Total expenses before charitable contribution, NOL, and DRD Income before charitable contribution, NOL, and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes (modified taxable income) Charitable contributions Taxable income before DRD Dividends received deduction (DRD) Book/Taxable income Book Income (Dr) Cr Book-tax Book-tax adjustments adjustments (Dr) Cr Taxable Income (Dr) Cr
Compute MV Corporation's 2022 taxable income given the following information relating to its year 1 activities. Also, compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. Use Exhibit 16-7. Required: Gross profit from inventory sales of $500,000 (no book-tax differences). Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV's pro rata share of the distributing corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book-tax differences). NOL carryover from 2021 of $10,000. Cash charitable contribution of $120,000. Complete this question by entering your answers in the tabs below. Required A Required B Compute MV Corporation's 2022 taxable income given the following information relating to its year 1 activities. Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Description Gross profit Other income: Dividend income Gross Income Expenses: Business expenses other than DRD, CC, and NOL Federal income tax expense Total expenses before charitable contribution, NOL, and DRD Income before charitable contribution, NOL, and DRD NOL carryover from prior year Taxable income for charitable contribution limitation purposes (modified taxable income) Charitable contributions Taxable income before DRD Dividends received deduction (DRD) Book/Taxable income Book Income (Dr) Cr Book-tax Book-tax adjustments adjustments (Dr) Cr Taxable Income (Dr) Cr
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter16: Multijurisdictional Taxation
Section: Chapter Questions
Problem 5CE
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Transcribed Image Text:Compute MV Corporation's 2022 taxable income given the following information relating to its year 1 activities. Also, compute MV's
Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. Use Exhibit 16-7.
Required:
Gross profit from inventory sales of $500,000 (no book-tax differences).
Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV's pro rata share of the distributing
corporation's earnings).
Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book-tax differences).
NOL carryover from 2021 of $10,000.
Cash charitable contribution of $120,000.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute MV Corporation's 2022 taxable income given the following information relating to its year 1 activities.
Note: Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Description
Gross profit
Other income:
Dividend income
Gross Income
Expenses:
Business expenses other than DRD, CC, and NOL
Federal income tax expense
Total expenses before charitable contribution, NOL, and DRD
Income before charitable contribution, NOL, and DRD
NOL carryover from prior year
Taxable income for charitable contribution limitation purposes
(modified taxable income)
Charitable contributions
Taxable income before DRD
Dividends received deduction (DRD)
Book/Taxable income
Book Income
(Dr) Cr
Book-tax Book-tax
adjustments adjustments
(Dr)
Cr
Taxable Income
(Dr) Cr
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