Gloria Deal's Advanced Tax Corporation Unit 4 Assignment

Gloria Deal's Advanced Tax Corporation Unit 4 Assignment -...

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Gloria Deal AC 430-01 Advanced Tax Corporate Unit 4 Assignment September 19th, 2011
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The exercise listed below is found on page C:4-29 of Prentice Hall’s Federal Taxation 2011. Complete the exercise and submit your work to the instructor. Water Corporation reports $500,000 of taxable income for the current year. The following additional information is available: For the current year, Water reports an $80,000 long-term capital loss and no capital gains. Taxable income includes $80,000 of dividends from a 10%-owned domestic corporation
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Unformatted text preview: Water paid fines and penalties of $6,000 that were not deducted in computing taxable income In computing this years taxable income, Water deducted a $20,000 NOL carryover from a prior tax year. Water claimed a $10,000 U.S. production activities deduction Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed for E&P purposes. Assume a 34% corporate tax rate. What is Waters current E&P for the year? Answer: It would be $370,000....
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Gloria Deal's Advanced Tax Corporation Unit 4 Assignment -...

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