Question

corporation, had operating income of $300,000. operating expenses f 35.000. How much is js Income talability for the year? D

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Net income = Operating income - operating expenses

= $300000 - $200000

=$100000

Income tax liability = $100000 × 21%

= $21000

Note - Since there is a net capital loss, ($5000 - $35000 = -$30000), C Corporations are not allowed to set off their capital losses from operating/ ordinary income in a current year.

Therefore, the tax liability for the year is , $21000.

So, the correct answer is option b, $21000.

Add a comment
Know the answer?
Add Answer to:
corporation, had operating income of $300,000. operating expenses f 35.000. How much is j's Income talability...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • During the current year, Sparrow Corporation, a calendar year corporation, had operating income of $425,000, operating...

    During the current year, Sparrow Corporation, a calendar year corporation, had operating income of $425,000, operating expenses of $200,000, a short-term capital loss of $10,000, and a long-term capital gain of $25.000. How much is Sparrow income tax liability for the vear? a $62,400 b. $32,700 OC. $33,600 d. $45,650 e. None of these choices are correct

  • In the current year, Sunset Corporation (a C corporation) had operating income of $200,000 and operating...

    In the current year, Sunset Corporation (a C corporation) had operating income of $200,000 and operating expenses of $175,000. In addition, Sunset had a $30,000 long-term capital gain, a $52,000 short-term capital loss, and $5,000 tax-exempt interest income. What is Sunset Corporation’s taxable income for the year? a. $0 b. $3,000 c. $22,000 d. $30,000 e. None of the above

  • Problem 3-38 (LO. 1,3) In the current year, Tanager Corporation (a calendar year corporation) had operating...

    Problem 3-38 (LO. 1,3) In the current year, Tanager Corporation (a calendar year corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55.000 and a short term capital loss of $40.000 a. Compute Tanager's taxable income and tax for the year. Taxable income: 105,000 Income tax: b. Assume the same facts except that Tanager's long-term capital gain was $15.000. Compute Tanager's taxable income and tax for the Taxable income:...

  • In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000...

    In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a short-term capital loss of $40,000. a. Compute Tanager's taxable income and tax for the year. Taxable income: $___ Income tax: $___ b. Assume the same facts except that Tanager's long-term capital gain was $15,000. Compute Tanager's taxable income and tax for the year. Taxable income: $___ Income...

  • TCOs 1 and 8) During 2014, Sparrow Corporation, a calendar year C corporation, had operating income...

    TCOs 1 and 8) During 2014, Sparrow Corporation, a calendar year C corporation, had operating income of $510,000, operating expenses of $370,000, a short-term capital loss of $25,000, and a long-term capital gain of $80,000. How much is Sparrow's tax liability for 2014?

  • During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000,...

    During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,00 w much is Sparrow's income tax liability for the year? $32,700 $33,600 $45,650 $62,400 1. Dahlia Corp. was organized and commenced Operations in 1930. At December 1, 2020, Dahlia had accumulated earnings and profits of $9,000 before a dividend declaration and distribution, On Decemb 2 020, Dahlia...

  • Problem 17-33 (a) (LO. 1, 3) In the current year, Werbung Corporation (a calendar year C...

    Problem 17-33 (a) (LO. 1, 3) In the current year, Werbung Corporation (a calendar year C corporation) had operating income of $430,000 and operating expenses of $355,000. In addition, Werbung had a long-term capital gain of $25,000, a long-term capital loss of $2,000 and a short-term capital loss of $30,000. a. Compute Werbung's taxable income and tax for the year. Taxable income: $ Income tax: $ b. Assume the same facts except that Werbung's long-term capital gain was $50,000. Compute...

  • 84) Eagle Corporation, a personal holding company, has the following results: Taxable income              $200,000 Dividends-received deduction       &nbs

    84) Eagle Corporation, a personal holding company, has the following results: Taxable income              $200,000 Dividends-received deduction              30,000 Excess charitable contributions              10,000 Long-term capital gains              10,000 Federal income taxes              61,000 Calculate the PHC tax. 85) Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return. Operating profit              $100,000 Long-term capital gain              80,000 Dividends (20%-owned corporation)              90,000 Interest              100,000 Gross income              370,000 Salaries expense              (50,000) General and administrative expense              (25,000) Dividends-received deduction              (72,000)...

  • Problem 3-38 (LO. 1, 3) In the current year, Tanager Corporation (a calendar year C corporation)...

    Problem 3-38 (LO. 1, 3) In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a short-term capital loss of $40,000. a. Compute Tanager's taxable income and tax for the year. Taxable income: $ 105,000 Income tax: $ 24,200 x Feedback Check My Work Capital gains and losses result from the taxable sales or exchanges of capital assets. Whether...

  • Calculator Carrot Corporation, a corporation, as amet short term capital gain f $65.000 and a net...

    Calculator Carrot Corporation, a corporation, as amet short term capital gain f $65.000 and a net long-term capital loss of $250.000 during 2019. Carrot Corporation had taxable income from other sources of $720,000. Prior years transactions induded the following: 2015 2016 Net long-term capital gain Net short term capital gain Net short-term captalgan Net long-term capital gain $150,000 60,000 45,000 2012 2018 Compute the amount of Carret's capital loss carryover to 2020. a. $32,000 b. 50 c. $45,000 8. $185.000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT