During the current year, Quartz Corporation (a calendar year taxpayer) had the followingincome and expenses: Income from operations - $200,000; Expenses from operations - $125,000; Qualifying dividends from domestic corporation in which Quartz owns a 40%interest -$17,000; NOL carryover from prior year - $2,000. On October 1 of the currentyear, Quartz Corporation made a contribution to a qualified charitable organization of $15,000 in cash (not included in any of the above items). Determine Quartz Corporation'scharitable contribution deduction for the current year.Group of answer choices$7,640.$9,000.$9,200.$15,000.

To determine Quartz Corporation's charitable contribution deduction for the current year, we need to…

Answered: During the current year, Quartz…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 4BCRQ

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Quince Corporation has taxable income of $485,000 for its calendar tax year. Calculate the corporation's income tax liability for 2019 before tax credits. $________________
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
Rose Corporation (a calendar year taxpayer) has taxable income of $290,000, and its financial records reflect the following for the year: Required: Calculate Rose Corporation’s Current E & P
Gosling, Inc., a calendar year, accrual basis corporation, reported $756,000 net income after tax on its financial statements prepared in accordance with GAAP. The corporation's financial records reveal the following information: Gosling earned $3,500 on an investment in tax-exempt municipal bonds. Gosling received an advance payment of rent this year for $25,000. This amount was not included in book income. Gosling's depreciation expense per books was $72,000, and its MACRS depreciation deduction was $105,000. Gosling recorded $58,000 of business meals and $27,000 of entertainment expense for book purposes. Gosling's federal income tax expense per books was $220,000. a. Compute Gosling's taxable income and regular tax liability. b. Prepare a Schedule M-1, page 5, Form 1120, reconciling Gosling's book and taxable income.
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.
The Pooch Corporation is a regular corporation that contributes $15,000 cash to qualified charitable organizationsduring the current year. The corporation has net taxable income of $160,000 before deducting the contributions.a. What is the amount of Pooch Corporation's allowable deduction for charitable contributions forthe current year?b. What may the corporation do with any excess amount of contributions?
For each of the following transactions, indicate wheth-er a special adjustment must be made in computing R Corporation’s current E&P. Answer assuming that E&P has already been adjusted for current taxable income. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000. The corporation received $5,000 of interest income from its investment in tax-exempt bonds. The corporation received a $10,000 dividend from General Motors Corporation. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code § 179. The corporation reported a § 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000.
In year 1 (the current year), Angel Corp. made a charitable donation of $550,000 to the Roof Over Peoples' Head Foundation (a qualifying charity). For the year, Angel reported taxable income of $4,000,000 before deducting any charitable contributions and before deducting its $90,000 dividends received deduction. Required: A. What amount of the $550,000 donation is Angel allowed to deduct for tax purposes in year 1? B. In year 2, Angel did not make any charitable contributions. It reported taxable income of $7,00,000 before any charitable contribution deductions and before a $120,000 dividends received deduction. What book-tax difference associated with the charitable contributions will Angel report in year 2? Is the difference favorable or unfavorable? Is it permanent or temporary
Heron Corporation, a calendar year, accrual basis taxpayer, provides the following information for this year and asks you to prepare Schedule M-1. Net income per books (after-tax) $239,700 Taxable income 195,000 Federal income tax liability 59,300 Interest income from tax-exempt bonds 5,000 Interest paid on loan incurred to purchase tax- 2,000 exempt bonds Life insurance proceeds received as a result of 100,000 death of Heron's president Premiums paid on policy on life of Heron's 4,500 president Excess of capital losses over capital gains 2,000 Retained earnings at beginning of year 375,000 Cash dividends paid 90,000 Tax depreciation in excess of book 7,500 depreciation
In the current year, Vorschusse Corporation (a calendar year C corporation) had operating income of $82,000 and operating expenses of $66,000. In addition, Vorschusse had a long-term capital gain of $5,000 and a short-term capital loss of $6,000. a. Compute Vorschusse's taxable income and tax for the year. Taxable income: $__________Income tax: $_______________ b. Assume the same facts except that Vorschusse's long-term capital gain was $8,000. Compute Vorschusse's taxable income and tax for the year. Taxable income: $____________Income tax: $________________
Beech Corporation, an accrual basis calendar year taxpayer, was organized and began business on July 1st of the current calendar tax year. During the current year, the corporation incurred the following expenses: State fees for incorporation $ 2,545 Legal and accounting fees incident to organization 8,908 Expenses for the sale of stock 10,180 Organizational meeting expenses 3,818 Assuming that Beech Corporation does not elect to expense but chooses to amortize organizational expenditures over 15 years, calculate the corporation's deduction for its current calendar tax year. Round per month calculation to two decimal places. Round your final answer to the nearest dollar.
John Budd is the sole stockholder of Ral Corp., an accrual basis taxpayer engaged in wholesaling operations. Ral's retained earnings at January 1, Year 1, amounted to $1,000,000. For the year ended December 31, Year 1, Ral's book income, before federal income tax, was $300,000. Included in the computation of this $300,000 were the following: $1,000 Dividends received on 500 shares of stock of a taxable domestic corporation that had 1,000,000 shares of stock outstanding (Ral had no portfolio indebtedness). What amount of the net dividend revenue should be included in Ral's Year 1 taxable income after special deductions? $500 $200 $150 O $900

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