prepared in accordance with GAAP. The corporation's books and records reveal the following information: deral income tax expense per books was $200,000. Luong's book income included $10,000 of dividends om a domestic corporation in which Luong owns a 25 percent stock interest, and $4,000 of dividends from a orporation in which Luong owns a 5 percent stock interest. Luong recognized $10,000 of capital losses this o capital gains. Luong recorded $8,000 of book expense for meals not provided by a restaurant and $10,000 pense for entertainment costs. Luong's depreciation expense for book purposes totaled $400,000. MACRS on was $475,000. Required: Compute Luong's federal taxable income and regular tax liability. Prepare a M-1, page 6, Form 1120, reconciling Luong's book and taxable income.
prepared in accordance with GAAP. The corporation's books and records reveal the following information: deral income tax expense per books was $200,000. Luong's book income included $10,000 of dividends om a domestic corporation in which Luong owns a 25 percent stock interest, and $4,000 of dividends from a orporation in which Luong owns a 5 percent stock interest. Luong recognized $10,000 of capital losses this o capital gains. Luong recorded $8,000 of book expense for meals not provided by a restaurant and $10,000 pense for entertainment costs. Luong's depreciation expense for book purposes totaled $400,000. MACRS on was $475,000. Required: Compute Luong's federal taxable income and regular tax liability. Prepare a M-1, page 6, Form 1120, reconciling Luong's book and taxable income.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
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