Cruz Corporation reports the following results for the current year: Gross sales Long-term capital loss Charitable...

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Cruz Corporation reports the following results for the current year: Gross sales Long-term capital loss Charitable contributions Cost of goods sold Short-term capital loss Officer salaries Client meals Rent Advertising expense Salaries Payroll taxes $150,000 10,000 30,000 10,000 30,000 12,000 5,000 4,000 2,000 Parking tickets Officer life insurance Repairs and maintenance Dividends (40% owned domestic corp) Federal income tax for 2019 Corporate State taxes for 2019 10,000 3,200 300 4,000 1,500 30,000 10,000 4,300 a. What are Cruz's taxable income and income tax liability? b. What, if any, carrybacks and carryovers are available and to what years should they be carried to? Cruz Corporation reports the following results for the current year: Gross sales Long-term capital loss Charitable contributions Cost of goods sold Short-term capital loss Officer salaries Client meals Rent Advertising expense Salaries Payroll taxes $150,000 10,000 30,000 10,000 30,000 12,000 5,000 4,000 2,000 Parking tickets Officer life insurance Repairs and maintenance Dividends (40% owned domestic corp) Federal income tax for 2019 Corporate State taxes for 2019 10,000 3,200 300 4,000 1,500 30,000 10,000 4,300 a. What are Cruz's taxable income and income tax liability? b. What, if any, carrybacks and carryovers are available and to what years should they be carried to?

Answer rating: 100% (QA)

a What are Cruzs taxable income and income tax liability Cruzs taxable income is P5000... View the full answer