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Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year Item Illinois income taxes Indiana income taxes Ohio Commercial Activity Tax 1 Amount Federal Treatment $33,417 Deducted on federal return Deducted on federal return Deducted on federal return $ 18,440 $3.976

Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year Item Illinois income taxes Indiana income taxes Ohio Commercial Activity Tax 1 Amount Federal Treatment $33,417 Deducted on federal return Deducted on federal return Deducted on federal return $ 18,440 $3.976

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: Amount $33,417 $ 18,440 $ 3,976 $ 41,200 $9,952 $ 15,300 $2,476 State depreciation expense was $51,200. Hoosier's federal taxable income was $151,500. Calculate Hoosier's Indiana state tax base. Item Illinois income taxes Indiana income taxes Ohio Commercial Activity Tax Depreciation Illinois municipal bond interest Indiana municipal bond interest Federal T-note interest Multiple Choice O O O $200,833 $172,416 $208,333 $174,892 Federal Treatment Deducted on federal return Deducted on federal return Deducted on federal return Deducted on federal return Excluded from federal return Excluded from federal return Included on federal return ↓
Transcribed Image Text:Hoosier Incorporated is an Indiana corporation. It properly included, deducted, or excluded the following items on its federal tax return in the current year: Amount $33,417 $ 18,440 $ 3,976 $ 41,200 $9,952 $ 15,300 $2,476 State depreciation expense was $51,200. Hoosier's federal taxable income was $151,500. Calculate Hoosier's Indiana state tax base. Item Illinois income taxes Indiana income taxes Ohio Commercial Activity Tax Depreciation Illinois municipal bond interest Indiana municipal bond interest Federal T-note interest Multiple Choice O O O $200,833 $172,416 $208,333 $174,892 Federal Treatment Deducted on federal return Deducted on federal return Deducted on federal return Deducted on federal return Excluded from federal return Excluded from federal return Included on federal return ↓
Horton Corporation is a 100 percent owned Canadian subsidiary of Cruller Corporation, a U.S. corporation. During the current year, Horton paid a dividend of C$633,750 to Cruller. The dividend qualifies for the 100 percent dividends received deduction. The dividend was subject to a withholding tax of C$39,000. Assume an exchange rate of C$1 = $1. Cruller reported U.S. source taxable income of $2,450,000 before considering the dividend received from Horton Corporation Compute the tax consequences to Cruller as a result of this dividend. Multiple Choice Taxable income of $2,450,000, net U.S. tax of $475,500, and FTC carryover of $0 Taxable income of $2,450,000, net U.S. tax of $514,500, and FTC carryover of $0 Taxable income of $3,083,750, net U.S. tax of $647,588, and FTC carryover of $39,000 Taxable income of $3,083,750, net U.S. tax of $608,588, and FTC carryover of $0
Transcribed Image Text:Horton Corporation is a 100 percent owned Canadian subsidiary of Cruller Corporation, a U.S. corporation. During the current year, Horton paid a dividend of C$633,750 to Cruller. The dividend qualifies for the 100 percent dividends received deduction. The dividend was subject to a withholding tax of C$39,000. Assume an exchange rate of C$1 = $1. Cruller reported U.S. source taxable income of $2,450,000 before considering the dividend received from Horton Corporation Compute the tax consequences to Cruller as a result of this dividend. Multiple Choice Taxable income of $2,450,000, net U.S. tax of $475,500, and FTC carryover of $0 Taxable income of $2,450,000, net U.S. tax of $514,500, and FTC carryover of $0 Taxable income of $3,083,750, net U.S. tax of $647,588, and FTC carryover of $39,000 Taxable income of $3,083,750, net U.S. tax of $608,588, and FTC carryover of $0
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