For the current year, the Beech Corporation has net income…

Question:

For the current year, the Beech Corporation has net income on its books of $60,000, including the following items: Net capital losses $15,000 Federal income tax expense $25,000 Federal tax depreciation exceeds the depreciation deducted on the books by $5,000.

What is the corporation’s taxable income?
a. $95,000
b. $103,000
c. $66,000
d. $90,000
e. None of these choices are correct.

Answer:

a. $95,000

The corporation’s taxable income is:

= $60,000 + $15,000 + $25,000 – $5,000

= $95,000

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