Question

31. Corona Corporation has the following income and expense items for the year: Gross receipts from sales $75,000 Dividends received from 30%-owned domestic corporation 50,000 Expenses connected with sales 40,000 The taxable income of Ghandi Corporation is A) $100,000. B) $85,000. C) $52,500. D) $35,000.

Answer 1

The taxable income of Ghandhi corporation :-

1. Sales income = sales revenues - expenses for sales

2. Dividend income

Computation of taxable income :-

Particulars	Amount ($)	Amount ($)
Sales revenues	75000
Less :- expenses incurred for sales	(40000)	35000
Dividend from 30% owned domestic company	50000	50000
Gross taxable income		85000

The taxable income of Ghandhi corporation is $85000

The answer is option B.

These are all the information required to solve the given question.

I hope, all the above mentioned explanations and calculations are useful and helpful to you.

Thank you.