8. Gilbreath Corporation is a C Corporation and has the following items of income and expense during the current year. Gross Income 100,000.00 Interest Income $ 5,000.00 COGS -70,000.00 Interest Expense $ -15,000.00 Depreciation -10,000.00 What is taxable income before limitation? What is the net businesss intrest expense? What is adjusted taxable income for purposes of the net business income limitation? How much of the net busienss interest expenses may Gilbreath deduct during the current year?

8. Gilbreath Corporation is a C Corporation and has the following items of income and expense during the current year. Gross Income 100,000.00 Interest Income $ 5,000.00 COGS -70,000.00 Interest Expense $ -15,000.00 Depreciation -10,000.00 What is taxable income before limitation? What is the net businesss intrest expense? What is adjusted taxable income for purposes of the net business income limitation? How much of the net busienss interest expenses may Gilbreath deduct during the current year?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 13P

See similar textbooks

Similar questions

Recording NOL Carryforward and Carryback|Carryforward Toner Corporation computed the following: Year 1 taxable income, $10,000; Year 2 taxable loss, $( 40,000). At the end of Year 2, Toner made the following estimates: Year 3 taxable income, $4,000; Year 4 taxable income, $11,000; and Year 5 taxable income, $50,000. On the basis of these estimates, Toner believes the full amount of the tax loss carryforward benefit is more likely than not to be realized. There are no other temporary differences. Tax rates are 25% for Year 1, Year 2, and Year 3; and 30% for Year 4 and Year 5. Net operating loss carryforwards can only offset a maximum of 80% of taxable income in each of the future years. Required Do not give solution in image format
8. An entity reported pretax financial income of P8,000,000 for the current year. The taxable income was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purpose. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. What amount should be reported as income tax payable at year-end? 1,600,000 2,100,000 2,400,000 1,900,000
*see attached What amount of permanent difference between accounting income and taxable income existed at year-end?a. P 520,000b. P 360,000c. P 800,000d. P 280,000
An entity reported pretax financial income of P8.000,000 for the current year. The taxable income was P7,000,000 for the current year. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P500,000 during the current year. The amount should be reported as current tax expense for the current year?
An entity reported taxable income of P 8,000,000 during 2019. Its first year of operations.The following are the differences that cause financial income to differ from taxable incomeexcess tax depreciation over accounting depreciation, P 500,000, revenue collected fortax in excess of accounting revenue, P 2,000,000 and tax penalties as an expense in theincome statement, P 200,000. The income tax rate is 30%1. What total tax expense should be reported for 2019?a. 1,890,000b. 2,400,000c. 1,950,000d. 2,010,0002. What is the net deferred tax expense or benefit for 2019?a. 450,000 expenseb. 450,000 benefitc. 510,000 expensed. 510,000 benefit
A domestic corporation had the following cumulative data in a year: 1st Qtr 2nd Qtr 3rd Qtr Year Gross Income P400,000 P800,000 1,000,000 P1,200,000 Expenses and Losses 200,000 420,000 600,000 720,000 REQUIRED: Compute for the Taxable Income if: The corporation chose the itemized deductions in the return for the first quarter? The corporation did not file a return for the 1st quarter? The corporation chose the Optional Standard Deduction for the first quarter?
Nina Corporation, with the total assets of P15,000,000 (MSME), shows the following data during taxable year: Sales Interest Income, net of 20% final tax Cost of Sales Salary expense Interest expense Rent expense Advertising expense Depreciation expense What is the correct amount of itemized deduction?
1). A corporation has income of $80,000 from operations, a $12,000 short-term capital gain, and a $16,000 long-term capital loss. What is the corporation’s taxable income for the year?
LNS Corporation reports book income of $2,940,000. Included in the $2,940,000 is $17,500 of tax-exempt interest income. LNS reports $2,560,000 in ordinary and necessary business expenses. What is LNS Corporation's taxable income for the year? Answer is complete but not entirely correct. $ 640,000 Taxable income
For the year ended December 31, 2021, Jocelyn Company reported pretax financial income of P7,500,000. The taxable income was P6,500,000. The difference is due to accelerated depreciation for income tax purposes. The income tax rate is 30% and the entity made estimated tax payment of P900,000 during the current year. What amount should be reported as current tax expense for the current year? O 1,050,000 O 1,950,000 O 2,250,000 O 1,350,000
Lin Ltd. reported the following: Earnings (loss) Depreciation (assets have a cost of $360,000) CCA Non-deductible expenses Tax rate Taxable income Accounting earnings Permanent difference Accounting income subject to tax Temporary difference 1. What is the amount of the taxable income or loss in each year? (Negative amounts and deductible amounts should be indicated by a minus sign.) Taxable income 20X7 20x7 (first year of operations) $98,000 $45,000 $60,000 $18,000 20x8 30% 2008 $(166,000) $ 45,000 $ 70,000 $18,000 30%
LNS Corporation reports book income of $2,890,000. Included in the $2,890,000 is $32,750 of tax-exempt interest income. LNS reports $2,597,500 in ordinary and necessary business expenses. What is LNS Corporation's taxable income for the year? Taxable income