Donor Corporation had the following income and deductions for last year: $5,000,000 3,500,000 Other operating expenses 800,000 Dividends (from 5 percent owned domestic corporations). 100,000 Sales Cost of goods sold Donor Corporation also made contributions (not included above) to

Transcribed Image Text:

Donor Corporation had the following income and deductions for last year: $5,000,000 3,500,000 Other operating expenses 800,000 Dividends (from 5 percent owned domestic corporations). 100,000 Sales Cost of goods sold Donor Corporation also made contributions (not included above) to qualifying charitable organizations of $175,000. Determine Donor Corporation's taxable income for the year. Question 2 (87.) The matrix below shows the stock ownership in four corporations by four unrelated individuals: Shareholder Percentages of Stock Owned in Corporations A B C D 10 5 10 20 30 40 30 10 30 15 10 20 30 40 50 50 Which of the above corporations, if any, are members of a brother-sister controlled group? Explain why each corporation is included or not. 1 2 3 4

• Expert Answer