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McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
Edition 3ISBN: 9780077924522McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
Edition 3ISBN: 9780077924522 Exercise 75
Compute MV, Corp.'s 2010 taxable income given the following information relating to its year 1 activities. Also, compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000.
• Gross profit from inventory sales of $500,000 (no book-tax differences).
• Dividends MV received from 25 percent-owned corporation of $100,000.
• Expenses other than DRD, charitable contribution (CC), net operating loss (NOL), and domestic production activities deduction (DPAD) are $350,000 (no book-tax differences).
• NOL carryover from prior year of $10,000.
• Cash charitable contribution of $120,000.
• Domestic production activities deduction of $5,000 (wage limitation does not apply).
• Gross profit from inventory sales of $500,000 (no book-tax differences).
• Dividends MV received from 25 percent-owned corporation of $100,000.
• Expenses other than DRD, charitable contribution (CC), net operating loss (NOL), and domestic production activities deduction (DPAD) are $350,000 (no book-tax differences).
• NOL carryover from prior year of $10,000.
• Cash charitable contribution of $120,000.
• Domestic production activities deduction of $5,000 (wage limitation does not apply).
Explanation
Verified
Verified
MV Corp.'s year 1 taxable income is $131...
McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick
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