During the current year, Swallow Corporation, a calendar year C corpora- tion, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Swallow Corporation owns 12% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year? Assume instead that Swallow Corporation owns 26% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year?
During the current year, Swallow Corporation, a calendar year C corpora- tion, has the following transactions:
Income from operations $660,000
Expenses from operations 760,000
Dividends received from Brown Corporation 240,000
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Swallow Corporation owns 12% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year?
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Assume instead that Swallow Corporation owns 26% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year?
TAXABLE INCOME:
Taxable income is based on an income tax system that imposes tax on items that falls under the income of an individual or corporation and is subtracted by expenses and deductions if any.
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