Homework Answers
HC, Inc's taxable income is $ 11,640 computed as follows:
| Description | Book Income (Dr)Cr | Book-tax Adjustments | Taxable Income (Dr) Cr | |
| (Dr) | Cr | |||
| Gross profit | 310,000 | 310,000 | ||
| Other income: | ||||
| Dividend income | 120,000 | 120,000 | ||
| Gross income | 430,000 | 430,000 | ||
| Expenses: | ||||
| Business expenses other than DRD,CC,NOL | (300,000) | (300000) | ||
| Federal income tax expense | (30000) | 30000 | ||
| Total expenses before charitable contribution,NOL,DRD deduction | (330,000) | (300,000) | ||
| Income before charitable contribution,NOL and DRD | 100,000 | 130,000 | ||
| NOL carryover from prior year | (12,000) | (12,000) | ||
| Taxable income for charitable contribution limitation purposes (modified taxable income) | 118,000 | |||
| Charitable contributions(limited to 10% of modified taxable income for tax) | (50,000) | 38,200 | (11,800) | |
| Taxable income before DRD | 106,200 | |||
| Dividends received deduction(DRD) | (94,560) | (94,560) | ||
| Book/ Taxable income | 50,000 | (106,560) | 68200 | 11,640 |
Deduction is the lesser of (1) full dividends received deduction of
$96,000 (120,000 x 80%) or (2) $94,560 [805 x ( $106,200 + 12,000
NOL carryover] taxable income before the DRD, NOL)
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Comprehensive Problem 5-56 (LO 5-1, LO 5-2, LO 5-3) Compute HC Inc.'s current-year taxable income given...
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Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
distributing corporation’s earnings).
Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
Pls help with the numbers in red. Also, provide an explanation of your results! Thank you!...
Pls help with the numbers in red.
Also, provide an explanation of your results! Thank you!
Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the...
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Prepare a Schedule M-1, page 5, Form 1120,
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Based on the book income to taxable income reconciliation you completed use the attached spreadsheet to...
Based on the book income to taxable income reconciliation you
completed use the attached spreadsheet to complete Palo Alto’s
Schedule M-1.
OTHER EXPENSES AND TOTAL EXPENSES FOR TAXABLE INCOME ARE
-340,000 AND -15,845,000
Palo Alto, Inc.
Schedule M-1
1
Net income per books
2
Federal income tax per books
3
Excess of capital losses over capital gains
4
Income subject to tax not recorded on books this year
(itemize)
5
Expenses recorded on books this year not deducted on this...
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Required information [The following information applies to the questions displayed below.] In year 1 (the current...
Required information [The following information applies to the questions displayed below.] In year 1 (the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). 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. b. In year 2, OCC did not make any charitable contributions. It reported taxable income...
Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
distributing corporation’s earnings).
Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
Pls help with the numbers in red.
Also, provide an explanation of your results! Thank you!
Compute HC Inc.'s current-year taxable income given the following information relating to its 2020 activities. Also, compute HC's Schedule M-1 assuming that HC's federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. • Gross profit from inventory sales of $310,000 (no book-tax differences) Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC's pro rata share of the...
Prepare a Schedule M-1, page 5, Form 1120,
reconciling Cramer’s book and taxable income.
Cramer Corporation, a calendar year, accrual basis corporation, reported $1.05 million of net income after tax on its 2018 financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: • Cramer's federal income tax expense per books was $201,000. • Cramer's book income included $11,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent stock...
Problem 3-54 (LO. 5) Emerald Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2020: Net income per books (after-tax) $268,200 Federal income tax per books 31,500 Tax-exempt interest income 15,000 Life insurance proceeds received as a result of death of corporate president 150,000 Interest on loan to purchase tax-exempt bonds 1,500 Excess of capital losses over capital gains 6,000 Premiums paid on life insurance policy on life of...
Based on the book income to taxable income reconciliation you
completed use the attached spreadsheet to complete Palo Alto’s
Schedule M-1.
OTHER EXPENSES AND TOTAL EXPENSES FOR TAXABLE INCOME ARE
-340,000 AND -15,845,000
Palo Alto, Inc.
Schedule M-1
1
Net income per books
2
Federal income tax per books
3
Excess of capital losses over capital gains
4
Income subject to tax not recorded on books this year
(itemize)
5
Expenses recorded on books this year not deducted on this...
1-22 Schedules M-1, M-2. P Corporation reports the following information for 2020: b. What are the nature and Net income per books.. Federal income taxes (accrued) Net capital loss Travel and meals (50% portion disallowed for FIT) Proceeds of life insurance on president Insurance premiums on life of president Tax-exempt interest... ACRS deductions in excess of straight-line depreciation used for book purposes Excess charitable contributions... Unappropriated retained earnings (beginning of 2019) Dividends paid during the year Complete Schedules M-1 and...
Required information (The following information applies to the questions displayed below.) In year 1(the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). 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. c. In year 2, OCC did not make any charitable contributions. It reported taxable income of...
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