Gross profit Interest income City bonds Corporate bonds 5. Dove Corporation's financial statement is as follows:...
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Gross profit Interest income City bonds Corporate bonds 5. Dove Corporation's financial statement is as follows: $6,000 fav. Perm 3,000 U.S. Government bonds 1,000 Long-term capital gains Long-term capital losses Total income 1,360,000 10,000 15,000 (18,000) Net capital loss 3000, unfax, Tem 1,367,000 Expenses Salaries-officers 500,000 Salaries-clerical and sales 200,000 Taxes (state, local, and payroll) 25,000 Advertising 15,000 Rental expenses 120,000 Repairs and maintenance 50,000 Interest expenses: Loan to purchase city bonds $10,000 unfay, Perm Depreciation* (depreciation for tax purpose is $45,000) Premiums on life insurance on key employees Total expenses Net income before tax Federal income tax Net income per books 60,000 20,000 Diff: 25000, Fav, Tem 12.000 unfay, perm 1,002,000 365,000 122,060 unfav, Perm 242,940 Report the Information on Schedule M-1 (please report items that need to be on M-1 for book-tax reconciliation). Items that added back to Net income per books Net income per book thank federal income tax $242,940 Items that subtract from Net income per books interest income on city bond denreciation diff Gross profit Interest income City bonds Corporate bonds 5. Dove Corporation's financial statement is as follows: $6,000 fav. Perm 3,000 U.S. Government bonds 1,000 Long-term capital gains Long-term capital losses Total income 1,360,000 10,000 15,000 (18,000) Net capital loss 3000, unfax, Tem 1,367,000 Expenses Salaries-officers 500,000 Salaries-clerical and sales 200,000 Taxes (state, local, and payroll) 25,000 Advertising 15,000 Rental expenses 120,000 Repairs and maintenance 50,000 Interest expenses: Loan to purchase city bonds $10,000 unfay, Perm Depreciation* (depreciation for tax purpose is $45,000) Premiums on life insurance on key employees Total expenses Net income before tax Federal income tax Net income per books 60,000 20,000 Diff: 25000, Fav, Tem 12.000 unfay, perm 1,002,000 365,000 122,060 unfav, Perm 242,940 Report the Information on Schedule M-1 (please report items that need to be on M-1 for book-tax reconciliation). Items that added back to Net income per books Net income per book thank federal income tax $242,940 Items that subtract from Net income per books interest income on city bond denreciation diff
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