1. For this year, Pine Corporation had losses of $20,000 from operations. It received $180,000 in dividends...
Question:
1. For this year, Pine Corporation had losses of $20,000 from operations. It received $180,000 in dividends from a 25%-owned domestic corporation. Pine’s taxable income is $160,000 before the dividends-received deduction. What is the amount of Pine’s dividend-received deduction?
2. Dividends on deposits or withdrawable accounts in mutual savings banks qualify for the dividends-received deduction when received by a corporation. True or false - explain
3. In the current year, Sting Corporation had a net income per book of $65,000, tax-exempt interest of $1,500, excess contributions of $3,000, excess tax depreciation over book depreciation of $4,500, premiums paid on term life insurance on corporate officers of $10,000 (Sting is the beneficiary), and accrued federal income tax of $9,700. Based on this information, what is Sting Corporation’s taxable income as would be shown on Schedule M-1 of its corporate tax return?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill