2-57, 2-58, 2-60 - 12,500 25 = 3,125 12,500 34 = 4,250...

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ACCT 467 Kristen Jack Chp 2 – Probs 57, 58, 60 1/24/2012 2-57 Purple Corporation: Taxable Income = 45,000 Tax Liability = 15% * 45,000 = $6,750 Azul Corporation: Taxable Income = 310,000 Tax Liability = 22,250 + 39% * 310,000 = $143,150 Pink Corporation: Taxable Income = 2,350,000 Tax Liability = 113,900 + 34% * 2,350,000 = $912,900 Turquoise Corporation: Taxable Income = 21,000,000 Tax Liability = 35% * 21,000,000 = $7,350,000 Teal Corporation (PSC): Taxable Income = 80,000 Tax Liability = 35% * 80,000 = $28,000 2-58 Red Corporation Taxable Income = 80,000 25,000 * 15% = 3,750 12,500 * 25% = 3,125 12,500 * 34% = 4,250 30,000 * 39% = 11,700 = $22,825 White Corporation Taxable Income = 150,000 25,000 * 15% = 3,750
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Unformatted text preview: 12,500 * 25% = 3,125 12,500 * 34% = 4,250 100,000 * 39% = 39,000 = $50,125 2-60 Net income per books (after-tax) 386,250 Add: Federal income tax per books 30,050 Nondeductible penalties 2,500 Interest on loan to purchase tax-exempt bonds 1,700 Excess of capital loss over capital gain 5,300 Premiums paid on life insurance policy on life of Eagle’s president 4,200 Subtract: Tax-exempt interest income (5,000) Life insurance proceeds received as a result of the death of the corporate president(300,000) Domestic production activities deduction (2,000) Excess of tax depreciation over book depreciation (3,000) Taxable Income $120,000...
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This note was uploaded on 02/22/2012 for the course ACCT 467 taught by Professor Ruhupatty during the Spring '12 term at Andrews Univeristy.

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