Let's Go Golfing Inc. Charitable Contribution Deduction Limitation Calculation: Taxable Income before the DRD, Capital loss carryback Trial Balance and NOL carryback and Charitable Contribution Deduction 12/31/23 Income Per Books $742,600 Schedule M Adjustments Add: Trial Balance (GAAP) Book to Tax Adjustments Trial Balance - Tax Interest expense on Loan to purchase state bonds $ 15,000 Debit Credit Debit Credit Debit Credit Excess capital losses over capital gains $ 15,000 Gross Sales $5,900,000] $ 5,900,000 Entertainment Expense S 35,000 Sales Returns and Allowances S 250,00 $ 250,000 Penalties and Fines $ 10,000 Cost of Goods Sold S 2,335,000 $ 2,335,000 Bad Debt Expense $ 17,000 Gain from Sale of Building (LTCG) 35000 [$ 35000 $ 3 Federal Income Tax $197,400 idends Received from Stock Less: Investments in less than 20% Tax Exempt State Bonds S (18,000) owned corporations 44,000 $ 44,000 MACRS Depreciation in excess of straight-line $ (30,000) Interst Income: State Bonds 180005 18,000 B - Taxable Income $984,000 Certificate of Deposit 25,000 $ 25,000 Charitable contribution limitation $ 98,400 |10% of $984,000 Salaries - Officers: Charitable contribution $ 85,000 | The lesser of the Charitable Contribution or the Limitation amount Rebecca Singer S 275000 $ 275,000 Donnie King S 275000 $ 275,000 Salaries - Clerical and Sales S 750,000 $ 750,000 Book to Tax Reconciliation: Taxes - State, Local and Payroll S 252,000 $ 252,000 Income Per Books $742,600 Repairs and Maintenance 5 145,000 $ 145,000 |Add: Interst Expense: Interest expense on Loan to purchase state bonds $ 15,000 Loan to purchase state bonds s 15,000 S 15000]$ - Excess capital losses over capital gains $ 15,000 Other business loans S 209,000 $ 209,000 Entertainment Expense S 35,000 Loss on sale of Marketable Securities (LTCL) s 50,000 S 50000]$ - Penalties and Fines S 10,000 Advertising Exense s 63,000 $ 63,000 Bad Debt Expense $ 17,000 Rental Expense S 118000 $ 118,000 Federal income tax $197,400 Entertainment Expense S 35,000 S 35000 s - Less: Depreciation Expense S 116,000 S 30,000 $ 146,000 Dividend received deduction $ (22,000) Charitable Contributions s 85,000 $ 85000 Tax Exempt State Bonds S (18,000) Employee Benefit Programs s 52,000 $ 52,000 MACRS Depreciation in excess of straight-line $ (30,000) Penalties and Fines s 10,000 $ 10000 Bad Debt expense. s 47,000 $ 17,000 $ 30,000 Taxable Income $962,000 Federal Income Tax $ 197,400 $ 197,400 s 2 Dividend Received Deduction S 22,000 $ 22,000 Profit (Loss) S 742,600 S 962,000 S 6,022,000 | 6,022,000 $5,969,000 [ $ 5,969,000