Shamberly Corp. is a calendar year, accrual basis corporation that has been in business for 30 years. The following income and expenses appear on Shamberly's records for the year ended December 31, Year 3. Revenues and Gains Gross sales Dividends: 10%-owned domestic corporation ABC Corp. Interest California State bonds U.S. treasury bonds Gain on sale of ABC stock Key person life insurance proceeds Total Costs and Expenses Cost of goods sold. Salaries and wages Depreciation Meals expense Key person life insurance premiums State income taxes Federal income taxes Rent, Utilities, etc.. Other expenses Total Net Income Revenues and Gains Gross sales Dividends: 10%-owned domestic corporation ABC Corp. Interest on California State bonds Interest on U.S. treasury bonds Gain on sale of ABC stock $ 1,000,000 400,000 15,000 35,000 95,000 300,000 $ 1,845,000 1. Calculate Shamberly's taxable income (or net operating loss) for the year. (Amounts to be deducted should be indicated by a minus sign.) Amount 650,000 420,000 220,000 20,000 15,000 10,000 45,000 200,000 50,000 1,630,000 215 000

Shamberly Corp. is a calendar year, accrual basis corporation that has been in business for 30 years. The following income and expenses appear on Shamberly's records for the year ended December 31, Year 3. Revenues and Gains Gross sales Dividends: 10%-owned domestic corporation ABC Corp. Interest California State bonds U.S. treasury bonds Gain on sale of ABC stock Key person life insurance proceeds Total Costs and Expenses Cost of goods sold. Salaries and wages Depreciation Meals expense Key person life insurance premiums State income taxes Federal income taxes Rent, Utilities, etc.. Other expenses Total Net Income Revenues and Gains Gross sales Dividends: 10%-owned domestic corporation ABC Corp. Interest on California State bonds Interest on U.S. treasury bonds Gain on sale of ABC stock $ 1,000,000 400,000 15,000 35,000 95,000 300,000 $ 1,845,000 1. Calculate Shamberly's taxable income (or net operating loss) for the year. (Amounts to be deducted should be indicated by a minus sign.) Amount 650,000 420,000 220,000 20,000 15,000 10,000 45,000 200,000 50,000 1,630,000 215 000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 5BCRQ

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