A domestic corporation presented the following information in 2019:REQUIRED:1. Compute the net income using OSD2. how much is the income tax due andpayable of the corporation if it started its operations in 2018? Regular SalesInterest income from client4,000,00050,000notesIncomefromsaleof150,000equipmentIncome from sale of scrap200,000materialsCost of sales2,000,000700,000Itemized deductionsCompute the net income using OSD.

OSD : It stands for Optional Standard Deduction, means the deductions available to the…

A domestic corporation presented the following information in 2019: REQUIRED: 1. Compute the net income using OSD 2. how much is the income tax due and payable of the corporation if it started its operations in 2018?

A domestic corporation presented the following information in 2019: REQUIRED: 1. Compute the net income using OSD 2. how much is the income tax due and payable of the corporation if it started its operations in 2018?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

A domestic corporation presented the following information in 2019:

REQUIRED:

1. Compute the net income using OSD

2. how much is the income tax due and
payable of the corporation if it started its operations in 2018?

Regular Sales
Interest income from client
4,000,000
50,000
notes
Income
from
sale
of
150,000
equipment
Income from sale of scrap
200,000
materials
Cost of sales
2,000,000
700,000
Itemized deductions
Compute the net income using OSD.

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