Sylvie Corp. had the following items of income and expense during the current tax year and is
Question:
Sylvie Corp. had the following items of income and expense during the current tax year and is a cash basis taxpayer. Calculate the corporation's current year EARNINGS & PROFITS (E&P) (NOT taxable income) under these facts:
Gross Sales: $40,000
Operating Expenses 20,500
Municipal Bond Interest Income 6,000
Dividend Income From 100% owned Subsidiary 10,000
LT Capital Loss Carryover from prior year 2,000
Depreciation Expense-(Calculated using Straight Line) 2,000
LT Capital Gain on Sale of XYZ stock 5,000
LT Capital Loss on Sale of ABC Stock 10,000
Federal income Taxes Paid 1,600
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill