In the current year, Vorschusse Corporation (a calendar year C corporation) had operating income of $82,000 and operating expenses of $66,000. In addition, Vorschusse had a long-term capital gain of $5,000 and a short-term capital loss of $6,000. a. Compute Vorschusse's taxable income and tax for the year. Taxable income: $__________ Income tax: $_______________ b. Assume the same facts except that Vorschusse's long-term capital gain was $8,000. Compute Vorschusse's taxable income and tax for the year. Taxable income: $____________ Income tax: $________________
In the current year, Vorschusse Corporation (a calendar year C corporation) had operating income of $82,000 and operating expenses of $66,000. In addition, Vorschusse had a long-term capital gain of $5,000 and a short-term capital loss of $6,000. a. Compute Vorschusse's taxable income and tax for the year. Taxable income: $__________ Income tax: $_______________ b. Assume the same facts except that Vorschusse's long-term capital gain was $8,000. Compute Vorschusse's taxable income and tax for the year. Taxable income: $____________ Income tax: $________________
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 5BCRQ
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In the current year, Vorschusse Corporation (a calendar year C corporation) had operating income of $82,000 and operating expenses of $66,000. In addition, Vorschusse had a long-term
a. Compute Vorschusse's taxable income and tax for the year.
Taxable income: $__________
Income tax: $_______________
b. Assume the same facts except that Vorschusse's long-term capital gain was $8,000. Compute Vorschusse's taxable income and tax for the year.
Taxable income: $____________
Income tax: $________________
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