Compute the accumulated earnings tax for Hornes Home Inspections, Inc., using the following information:

Accumulated earnings as of the end of last year $120,000

Taxable income 101,000

Less than 20 percent owned dividends 22,000

Net operating loss carryover 6,000

Excess of long-term capital gains over long-term capital losses, taxed at 21 percent 17,000

Taxes actually paid 21,210

Answer rating: 100% (QA)

To calculate the accumulated earnings tax we first need to calculate the corporations taxable income ... View the full answer