Luong Corporation, a calendar year, accrual basis corporation, reported $1.90 million of net income after tax on its financial statements prepared in accordance with GAAP. The corporation’s books and records reveal the following information:
- Luong’s federal income tax expense per books was $218,000.
- Luong’s book income included $28,000 of dividends received from a domestic corporation in which Luong owns a 25 percent stock interest, and $13,000 of dividends from a domestic corporation in which Luong owns a 5 percent stock interest.
- Luong recognized $28,000 of capital losses this year and no capital gains.
- Luong recorded $17,000 of book expense for meals not provided by a restaurant and $19,000 of book expense for entertainment costs.
- Luong’s depreciation expense for book purposes totaled $418,000. MACRS depreciation was $475,000.
Required:
- Compute Luong’s federal taxable income and regular tax liability.
- Make a Schedule M-1, page 6, Form 1120, reconciling Luong’s book and taxable income.
It’s that simple.Pay only when you are satisfied.
Get Personalized Homework Help
Improve Your Grades Today
How It Works
1-Send us your Assignment requirements, attach and deadline for submission.
2-You will get a confirmation from us with a price quote.Pay us and be relax.
3-Your Completed task will be e mailed to you before agreed time.
Submit Your Assignment/Essay/Discussion/Term Paper/Final Exam or CaseStudy Detail
Available 24/7!
Send your academic problems,
Get instant Help only at Writerscampus!