5.) Ollie Inc. has book income of $250,000. The following information is available: a. Ollie received a $20,000 dividend from a large publicly-traded domestic corporation. Ollie owns less than 1% of the stock of the company. b. Income tax expense on the financial statements was S75,000. c. Depreciation expense on the financial statements was S50,000 less than depreciation determined using tax laws. d. Ollie received life insurance proceeds of $40,000. e. Charitable contributions of $45,000 were made. Determine the taxable income of Ollie.
5.) Ollie Inc. has book income of $250,000. The following information is available: a. Ollie received a $20,000 dividend from a large publicly-traded domestic corporation. Ollie owns less than 1% of the stock of the company. b. Income tax expense on the financial statements was S75,000. c. Depreciation expense on the financial statements was S50,000 less than depreciation determined using tax laws. d. Ollie received life insurance proceeds of $40,000. e. Charitable contributions of $45,000 were made. Determine the taxable income of Ollie.
Chapter4: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:5.) Ollie Inc. has book income of $250,000. The following information is available:
a. Ollie received a $20,000 dividend from a large publicly-traded domestic
corporation. Ollie owns less than 1% of the stock of the company.
b. Income tax expense on the financial statements was $75,000.
c. Depreciation expense on the financial statements was $50,000 less than
depreciation determined using tax laws.
d. Ollie received life insurance proceeds of $40,000.
e. Charitable contributions of $45,000 were made.
Determine the taxable income of Ollie.
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