S treasury notes municipal bonds total interest 18000

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Unformatted text preview: stic corporation qualify for the dividends received deduction. A Money Market Fund does not qualify as a domestic corporation. As a result, the entire $2,100 paid by the Money Market Fund is included in Ral's income. CPA-04376 Type1 M/C 148. CPA-04376 A-R Corr Ans: A PII May 92 #5 (Adapted) 13 PM#54 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 Investment Trust Mutual Fund Corp. (capital gains divide...
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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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