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Corporate tax return questions
Basic information for the first two questions about the corporate income tax return. There is no state income
tax.In its first two years of operations a corporation had the following results.
GAAP Net Income
Rent, utilities, etc.
Net income before tax
The company does not elect any accounting method on its tax return that differs from GAAP accounting.
tax return for year 1, how much adjustment is made for charitable contributions on schedule M-1?
Refer to preceding question. On the year 2 income tax return, what adjustment will be made for charitable
contributions on Schedule M-1?
$2,000 on Line 8(b)
$2,000 on Line 5(b)
$3,000 on Line 5(b)
$3,000 on Line 8(b)
Refer to your income tax return problem assignment (see exhibits at end of this test). Assume that your audit
reveals that an additional invoice for entertainment expenses (not lavish, etc.) for $10,000 was received on
December 31, 2009. The original account balances provided with the problem are used in preparing the income