A Corp has a net income per books of$108,750. The following book-tax differenceswere found:Federal income tax expense per books is$22,837Equipment with a book value of $20,000 wassold for $15,000. Tax basis was $0.Meals totaled $1,000.Fervor paid $8,000 in life insurance premiumson key employees.Tax depreciation is $175,500.Book depreciation under straight line is$20,000.Fervor incurred a net capital loss of $3,000.What is the taxable income before NOL &DRD?

Net income:Income resulting after making deductions regarding various operating expenses, interest…

Answered: $20,000. Fervor incurred a net capital…

Business

Accounting

$20,000. Fervor incurred a net capital loss of $3,000. What is the taxable income before NOL & DRD?

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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Question

A Corp has a net income per books of
$108,750. The following book-tax differences
were found:
Federal income tax expense per books is
$22,837
Equipment with a book value of $20,000 was
sold for $15,000. Tax basis was $0.
Meals totaled $1,000.
Fervor paid $8,000 in life insurance premiums
on key employees.
Tax depreciation is $175,500.
Book depreciation under straight line is
$20,000.
Fervor incurred a net capital loss of $3,000.
What is the taxable income before NOL &
DRD?

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