3.1.2 - Graded Problems Ch. 7 CP 66 - u

3.1.2 - Graded Problems Ch. 7 CP 66 - u - Lanco Corporation...

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Lanco Corporation Taxable income for this year $ 1,460,000.00 MACRS deprecation (accrual method) $ 80,000.00 Net capital loss carryover from last year $ 10,000.00 Net operating loss carryover from last year $ 25,000.00 Tax-exempt income $ 5,000.00 Life insurance proceeds $ 250,000.00 Excess current charitable contribution (carried over next year) $ (2,500.00) Nondeductible life insurance premium $ (3,500.00) Nondeductible interest expense (loan used to buy tax-exempt bonds) $ (1,000.00) Federal income taxes paid this year $ (496,400.00) Current E&P for this year $ 1,326,600.00 6/30/2015 - cash $ 50,000.00 9/30/2015 - Parcel of land at fair market value $ 75,000.00 Luigi assumed the existing mortgage on the property $ (15,000.00) Dividend Income by Lug Nut $ 110,000.00 Current E&P for this year $ 1,326,600.00 6/30/2015 - cash $ (50,000.00) 9/30/2015 - Parcel of land at fair market value $ (75,000.00) Luigi assumed the existing mortgage on the property $ 15,000.00 $ 1,216,600.00 Accumulated E&P at the beginning of the year $ 2,400,000.00 Accumulated E&P at the beginning of next year $ 3,616,600.00
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Lanco Corp Taxable income for this year $ 1,460,000.00 Taxable income MACRS deprectaion (accrual method) $ 200,000.00 MACRS (Straight-line) $ 120,000.00 $ 80,000.00 Net capital loss carryover from last year $ 10,000.00 NCL
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