Reference no: EM132833735

Problem 1: Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense.

Point 1: Book income of $56,000 including capital gains of $3,500, a charitable contribution of $1,900, and meals expenses of $6,000.

Point 2: Book income of $98,000 including capital losses of $4,500, a charitable contribution of $15,000, and meals expenses of $1,500.

Point 3: Book income of $79,000 including municipal bond interest of $1,250, a charitable contribution of $4,500, and dividends of $2,000 from a 10% owned domestic corporation. The corporation also has an $6,500 charitable contribution carryover.

Point 4: Book income of $135,000 including municipal bond interest of $1,450, a charitable contribution of $3,750, and dividends of $6,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $4,750 and a capital gain of $1,500 in the current year.