The Kimpton Corporation pays the following taxes during 2011: Federal taxes withheld from employees ........ $26,000 State
Question:
The Kimpton Corporation pays the following taxes during 2011:
Federal taxes withheld from employees ........ $26,000
State taxes withheld from employees .......... 9,000
Social Security withheld from employees ........ 4,850
Kimpton’s share of Social Security taxes ........ 4,850
Federal income tax paid in 2011 with 2010 tax return .... 1,790
Federal income tax paid in 2011 ............ 12,340
Real estate taxes .................. 6,750
State income taxes paid in 2011 ............. 5,720
State income taxes paid in 2011 with 2010 return ...... 690
State tax on capital acquisitions .............. 2,700
Sales tax on supplies .................. 3,250
Also, the county treasurer notifies Kimpton that it is being assessed a special real estate tax of $64,000 for upgrading the sidewalks and sewer connections in the area. The special tax is payable in 4 yearly installments of $16,000. What amount can Kimpton deduct for taxes paid in 2011?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher