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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:
Cost of sales
Other income (loss):
Net long-term capital loss
Income before federal income tax $1,000,000
(6,400) Additional information:
Interest arose from the following sources:
U.S. Treasury notes
Total interest 18,000
98,000 $ 3,000
5,200 Dividends arose from the following sources:
Taxable domestic corporation
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.
- Fall '10
- The Land