Barkley Company, a closely held corporation, listed the following accounting income shown below.

Revenues			Expenses
Sales	900,000		Business operating expenses	450,000
Dividends on stocks (<20% ownership)	50,000		Premiums on life insurance
Life insurance proceeds paid to			policies with corporation as
corporation by reason of shareholder's			Beneficiary	50,000
Death	400,000		Depreciation**	40,000
Total Revenues	1.35 mill		Federal income taxes paid	170,100
			Total Expenses	679,400
			Net income per books	639,900

** The company used MACRS depreciation for tax purposes and the total of that was $50,000.

Barkley taxable income for the year was:

Question options:

a	$425,000
b	$435,000
c	some other amount

Answer rating: 100% (QA)

Answer The correct ... View the full answer