of $54,000. Determine Cherry Corporation’s deduction for organizational expenditures for 2018.26. Compute the income tax liability for each of the following unrelated calendar year C corporations.a)In 2017, Darter Corporation has taxable income of $68,000.b)In 2017, Owl Corporation has taxable income of $10,800,000.c)In 2018, Toucan Corporation has taxable income of $170,000.
29. In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this info on their respective Federal income tax returns for current year under following assumptions?a)Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business).b)Riflebird Company is a C corporation (no dividends were paid during the year).30. In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this info, determine income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations.(Ignore deduction for qualified business income and3.8% Medicare surtax on net investment income.)a)Azure is a C corporation and pays no dividends or salary to Sasha.b)Azure is a C corporation and distributes $75,000 of dividends to Sasha.c)Azure is a C corporation and pays $75,000 of salary to Sasha.d)Azure is a sole proprietorship, and Sasha withdraws $0.
e)Azure is a sole proprietorship, and Sasha withdraws $75,000.32. Benton Company (BC), a calendar year entity, has one owner, who is in the 37% Federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). BC’s gross income is $395,000, and its ordinary trade or business deductions are $245,000. Compute the Federal income tax liability on BC’s income for the current year under the following assumptions. Ignore the standard deduction (or itemized deductions)and the deduction for qualified business income.a)BC is operated as a proprietorship, and the owner withdraws $100,000 for personal use.b)BC is operated as a corporation, pays out $100,000 as salary, and pays no dividends to its shareholder.c)BC is operated as a corporation and pays out no salary or dividends to its shareholder.d)BC is operated as a corporation, pays out $100,000 as salary to its shareholder, and pays out the remainder of its earnings as dividends.33. In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager
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