Reference no: EM132586733

Question 1: Darby Inc. has just completed its fiscal year ended December 31, 2019. The company's accountant has provided its GAAP determined income before taxes which is $1,236,010. You have been asked to calculate the company's 2019 net business income for tax purposes and have been provided with the following additional information concerning the 2019 fiscal year:

Option 1: Accounting amortization expense totaled $236982. For tax purposes, the company intends to deduct CCA of $261,070.

Option 2: Accounting expenses include $49279 in meals and entertainment.

Option 3: The company incurred $39674 in landscaping costs. These costs were capitalized in the company's accounting records.

Option 4: The president and his wife attended a convention that resulted in $11,814 in travel expenses for the company. The entire amount was expensed on the income statement. Of this amount, $5,947 was spent on the expenses of the president's wife.

Option 5: The company paid dues of $12309 to a golf club that is used extensively by the executives and salespeople to entertain clients. The entire amount was expensed on the income statement.Calculate net business income for tax purposes for Darby Inc.