Corporate%20Tax%20Example - C Corporation Dividends...

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Revenues $1,000,000 COGS $ 250,000 Gross Margin $750,000 Tax-Exempt Interest Income $100,000 Advertising $ 10,000 Salary $ 60,000 Payroll Taxes $ 4,590 State Income Taxes $ 44,957 Book Depreciation $ 10,000 Rent $ 60,000 $ 10,000 Office Supplies $ 3,000 Legal Fees $ 10,000 $ 7,500 Bank Charges $ 1,000 Travel Expenses $ 50,000 Accountant Fees $ 10,000 Total Expenses $281,047 Net Income before Federal Taxes $568,953 Federal Income Taxes $???,??? Book Income $???,??? C Corporation Federal Income Taxes are a flat 35%
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Unformatted text preview: C Corporation Dividends Distributed $50,000 Tax Depreciation is $20,000 1. Are the dividends distributed from the C Corporation tax free to the shareholder? 2. Which of the following income/expenses are adjustments or book – tax differences? A) Meals and Entertainment B) Depreciation C) Tax-Exempt Interest Income 3.What is the C Corporation’s Taxable Income? 4. What is the C Corporation’s Federal Income Tax? 5. What is the C Corporation’s Book Income?...
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This note was uploaded on 04/18/2008 for the course MGMT 200T taught by Professor Purdum during the Fall '08 term at Purdue.

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Corporate%20Tax%20Example - C Corporation Dividends...

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