Jackie forecasts the following for the taxable year 2023.Gross profit from regular operations - 5,600,000Other operating income - 400,000Non-operating income - 50,000Cost of Sales - 3,700,000Deductible Expenses - 1,800,000 Assuming Jackie is a corporate taxpayer, how much is the optional standard deduction? A. 2,400,000B. 3,880,000C. 2,420,000D. 3,900,000

Working Note :- Optional standard…

Answered: Jackie forecasts the following for the…

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Accounting

Jackie forecasts the following for the taxable year 2023. Gross profit from regular operations - 5,600,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 31P

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Jackie forecasts the following for the taxable year 2023.

Gross profit from regular operations - 5,600,000
Other operating income - 400,000
Non-operating income - 50,000
Cost of Sales - 3,700,000
Deductible Expenses - 1,800,000

Assuming Jackie is a corporate taxpayer, how much is the optional standard deduction?

A. 2,400,000

B. 3,880,000

C. 2,420,000

D. 3,900,000

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

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