Remsco, a C-Corporation, has taxable income of $60,000 before any limitations. Included in taxable income is a $10,000 charitable contribution. Remsco has no DRD, NOLS, or capital losses factoring into its taxable income. What is Remsco's current-year charitable contribution deduction? a) $7,000 current-year deduction O b) $10,000 current-year deduction c) $6,000 current-year deduction

Remsco, a C-Corporation, has taxable income of $60,000 before any limitations. Included in taxable income is a $10,000 charitable contribution. Remsco has no DRD, NOLS, or capital losses factoring into its taxable income. What is Remsco's current-year charitable contribution deduction? a) $7,000 current-year deduction O b) $10,000 current-year deduction c) $6,000 current-year deduction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information Skip to question [The following information applies to the questions displayed below.] BCS Corporation is a calendar-year, accrual-method taxpayer. BCS was formed and started its business activities on January 1 of this year. It reported the following information for the year. Indicate BCS's deductible amount for this year in each of the following alternative scenarios. (Leave no answers blank. Enter zero if applicable.) b. BCS accrued an expense of $50,000 for amounts it anticipated it would be required to pay under the workers' compensation act. During the year, BCS actually paid $10,000 for workers' compensation–related liabilities.
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In 2021, OCC Corporation made a charitable donation of $400,000 to the American Red Cross. For the year, OCC reported taxable income of $1,500,000 before deducting any charitable contributions, before deducting its $20,000 dividends-received deduction, and before deducting its $40,000 NOL carryover from last year. Assume the donation is a qualified contribution. a. What amount of the $400,000 donation is OCC allowed to deduct for tax purposes in 2021, what is the carryover to 2022, and when does the carryover expire?
In 2024, LAA Incorporated made a charitable donation of $116,000 to the Trevor Project (a qualifying charity). For the year, LAA reported taxable income of $566,000, which included a $116,000 charitable contribution deduction (before limitation) and a $51,600 dividends-received deduction, and a $14,400 net operating loss carryover from 2023. What is LAA Incorporated's charitable contribution deduction for 2024?
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GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The Tax shall be Plus Of Excess Over 250,000 250,000 400,000 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000
George operates a business that in 2020 generated revenues of $50 million and allocable taxable income of $560,000. Included in the computation of allocable taxable income were $900,000 of business interest expense, $20,000 of business interest income, and $180,000 of depreciation. Assume CARES Act applies. What is the maximum business interest deduction that George will be eligible to claim this year? Multiple Choice • $168,000 • $222,000 $280,000 • $830,000 • $880,000
Lake Life, Inc., a C corporation, owns a single asset with a basis of $250,000 and a fair market value of $500,000. Lake Life elects S corporation status. Lake Life holds a positive E & P balance. The entity elects S corporation status for 2019 and then sells the asset. What are the corporate-level built-in gains taxes that must be paid by Lake Life? Answer: $____________
Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $79,000. Davis does not pay back the excess benefits to the organization before the first-level tax is due. a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: $ 19,750 X On Davis: $ 7,900 X.
B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash basis taxpayer. On December 31, 2021, the corporation accrues interest of $4,000 on a loan from Bonnie and also accrues a $15,000 bonus to Bonnie. The bonus is paid to Bonnie on February 1, 2022; the interest is not paid until 2023. How much can B Corporation deduct on its 2022 tax return? a. $19,000 b. $4,000 c. $12,000 d. $15,000 e. $0
In 2021, LAA Incorporated made a charitable donation of $151,500 to the American Red Cross. For the year, LAA reported taxable income of $622,000, which included a $151,500 charitable contribution deduction (before limitation), a $68,500 dividends-received deduction, and a $18,100 net operating loss carryover from year 2020. What is LAA Incorporated's charitable contribution deduction for 2021? Assume the charitable donation is not a qualified contribution because LAA Incorporated. Did not make the necessary election. Charitable contribution deduction for year 1