Reference no: EM132833729

Problem 1: Determine the amount of taxable income and separately stated items in each of the below case, assuming the corporation is a Subchapter S corporation. Ignore any carryforward items.

Corporate financial statement: net income of $54,250 including tax expense of $15,900, charitable contributions of $3,000, and depreciation expense of $38,350. Depreciation expense for tax purposes is $47,440.

Corporate financial statement: net income of $142,600 including tax expense of $69,350, charitable contributions of $28,000, depreciation expense of $105,250, and meals expenses of $31,900. Depreciation expense for tax purposes is $147,700.

Corporate financial statement: net income of $230,050 including tax expense of $112,620, charitable contributions of $16,000, municipal bond interest of $20,170, meals expenses of $43,700, capital gains of $6,450, and depreciation expense of $145,150. Depreciation expense for tax purposes is $133,250, and the corporation has a $7,315 charitable contribution carryforward for the current year.