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What should wright report as taxable income

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Reference no: EM132944393

Wright Corporation reported $100,000 of book income before income taxes for the year ended December 31, 2019. The income statement disclosed the following information:

  • Christmas gifts to 40 customers at $100 each
  • Dividends of $20,000 received from Morley, Ltd., a 20%-owned corporation that is not subject to United States income tax
  • Insurance premiums of $15,000 on a policy insuring the life of the president of the corporation, under which Wright Corporation is the beneficiary

Problem 1: What should Wright report as its taxable income for 2019?

a. $103,000
b. $105,000
c. $118,000
d. $115,000

Reference no: EM132944393

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