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Unformatted text preview: • $12,000 NOL (from 2009) • $5,000 charitable contribution (from 2008) • $4,000 short-term capital loss (from 2007) [a] Compute Brady's 2010 taxable income. [b] List any items that Brady can carry forward to 2011? [c] Compute Brady’s financial accounting net income, assuming that the income tax expense per books is equal to the income tax liability computed based on taxable income in part a (i.e., ignore deferred taxes). [d] Using Schedule M-1 from Form 1120 (the M-1 can be obtained from “tax form” link on my web page) reconcile book income, computed in part c, to the taxable income computed in part a. (Hint: Schedule M-1 reconciles book income to taxable income before consideration of the dividends received deduction and any NOL carry forward). [e] Determine whether each book-tax difference is (1) a permanent difference – that will never reverse, or (2) a temporary (timing) difference – that will reverse over time....
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This note was uploaded on 08/29/2010 for the course TAX 5015 taught by Professor Kelliher,c during the Summer '08 term at University of Central Florida.
- Summer '08