A corporation has a taxable income of $2,122,324. At this income level, the federal income rate is 49%, the state tax rate is 18%, and the local tax rate is 9%. If each tax rate is applied to the the total taxable income, the company would have to pay $2,122,324 * 0.49 in federal taxes. Luckily for the corporation, the taxes paid are deducted as described above. How much is paid in federal taxes if the customary deductions are taken into consideration?

Which of the following statements regarding political contributions made by a corporation is CORRECT? a. Political contributions are allowed as a deduction in the computation of taxable income, therefore they are deducted on Schedule 2. b. Corporations receive a tax credit equal to 15% of political contributions made in the year. O c. Political contributions are not allowed as a deduction in the computation of business income, therefore they are added back on Schedule 1. O d. The total deduction for political contributions is limited to 75% of the corporation's net income in the year.

Calculate Anaheim Corporation's excess net passive income tax in each of the following alternative scenarios: a. Passive investment income, $100,000; expenses associated with passive investment income, $40,000; gross receipts, $208,000; taxable income if a C corporation, $22,400; corporate Earnings and profit, $41,000. Excess net passive income tax???   b. Passive investment income, $100,000; expenses associated with passive investment income, $70,000; gross receipts, $208,000; taxable income if a C corporation, $5,600; corporate Earnings and profit, $41,000. Excess net passive income tax???   c. Passive investment income, $100,000; expenses associated with passive investment income, $40,000; gross receipts, $208,000; taxable income if a C corporation, $22,400; corporate Earnings and profit, $0. Excess net passive income tax???

During the year, CDE Corporation earned enough profits to pay dividends to its shareholders. CDE is a C corporation. What are the tax consequences of this distribution?  (a) The corporation will increase their earnings and profits by the amount distributed.  (b) The corporation will reduce its taxable income by the amount distributed to the shareholders.  (c) The corporation will pay a flat tax of 21% on the amount distributed. The shareholders also include their dividends received in taxable income.  (d) There are no direct tax consequences for either the corporation or the shareholders.

A corporation has a taxable income of $2,302,253.  At this income level, the federal income rate is 49%, the state tax rate is 20%, and the local tax rate is 13%.  If each tax rate is applied to the the total taxable income, the company would have to pay $2,302,253 * 0.49 in federal taxes.  Luckily for the corporation, the taxes paid are deducted as described above.  How much is paid in federal taxes if the customary deductions are taken into consideration? $                       .  Round to the nearest dollar.

AAA is a private educational institution. Which of the following is TRUE? *   Its income from related and unrelated activities are subject to income tax. If the ratio of the gross income from unrelated activities over total gross income does not exceed 50%, it is subject to a preferential tax rate of 1%. If the ratio of the gross income from unrelated activities over total gross income exceeds 50%, it is subject to the regular income tax rate. All of the above

Credits are more valuable than deductions to a corporation because O only 50% of all deductions may be subtracted. deductions only apply to interest received on a municipal bond. O deductions are subtracted from income tax expense. credits are subtracted after the income tax expense has been computed. O credits are more valuable because they are the expenses of operating a business.

1)During the year, CDE Corporation earned enough profits to pay dividends to its shareholders. CDE is a C corporation. What are the tax consequences of this distribution?    The corporation will increase their earnings and profits by the amount distributed.  The corporation will reduce its taxable income by the amount distributed to the shareholders.  The corporation will pay a flat tax of 21% on the amount distributed. The shareholders also include their dividends received in taxable income.  There are no direct tax consequences for either the corporation or the shareholders.   20 Choose the response that correctly describes a guaranteed payment.    A loan payment from the partnership to pay back a loan from a partner.  A loan payment from the partner to pay back a loan from a partnership.  A payment made to a partner from the profits of the partnership.  A payment made to a partner without regard to the income of the partnership.   3)Which of the following expenses may a partnership…

Patriot Corporation reports the following results for the current year: View the current year results. Read the requirements. Requirement a. What are Patriot's taxable income and income tax liability for the current year? Begin by computing Patriot's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Gross income Minus: Taxable income Requirements a. What are Patriot's taxable income and income tax liability for the current year? b. How would your answers to Part a change if Patriot's short-term capital loss is $12,000 instead of $2,000? Print Done - X Current Year Results Gross profits on sales Long-term capital gain Long-term capital loss Short-term capital gain Short-term capital loss Operating expenses Print $ 159,000 7,000 8,000 9,000 2,000 70,000 Done X