Determine 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. a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of $1,000, and travel and entertainment expenses of $3,000. b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of $12,000, and travel and entertainment 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 $8,000 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.
Determine 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. a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of $1,000, and travel and entertainment expenses of $3,000. b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of $12,000, and travel and entertainment 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 $8,000 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.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Determine 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.
a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of
$1,000, and travel and entertainment expenses of $3,000.
b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of
$12,000, and travel and entertainment 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 $8,000 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.
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