Ramo corp sol corp stock sold 11094 real estate

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Unformatted text preview: N. O. P. Q. R. $21,570 $98,000 $200,000 $214,000 $300,000 $700,000 $1,000,000 $(13,430) $(14,550) CPA-04317 Explanation Choice "O" is correct. $700,000. No adjustment is necessary to go from the book amount to tax amount. Thus, the amount deductible is $700,000. CPA-04318 Type1 M/C 138. CPA-04318 A-R Corr Ans: N PII May 92 #5 (Adapted) 3 PM#44 R 3-99 Page 3 Following is Ral Corp.'s condensed income statement, before federal income tax, for the year ended December 31, 1993: Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): Interest Dividends Net long-term capital loss Income before federal income tax $1,000,000 (700,000) 300,000 (220,000) 80,000 $5,200 19,200 (6,400) Additional information: Interest arose from the following sources: U.S. Treasury notes Municipal bonds Total interest 18,000 98,000 $ 3,000 2,200 5,200 Dividends arose from the following sources: Taxable domestic corporation Clove Corp. Ramo Corp. Sol Corp. (stock sold 1/10/94) Real Estate Inv...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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