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Crazy boy [7]
2 years ago
13

Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $105,000. Not included in

the computation was a disallowed meals expense of $2,000, tax-exempt income of $1,000, and deferred gain on an installment sale of $25,000. The corporation's current earnings and profits for year 1 would be:
Business
1 answer:
kondor19780726 [428]2 years ago
7 0

The corporation's current earnings and profits for year one would be (A) $354,000.

<h3>What is taxable income?</h3>
  • The base on which an income tax system levies tax is referred to as taxable income.
  • In other words, the income is subject to taxation by the government.
  • In general, it includes some or all elements of income before costs and other deductions are deducted.
  • Income, costs, and other deductions differ depending on the country or system.
  • Many systems stipulate that certain types of income are not taxable (also known as non-assessable income) and that certain expenses are not deductible when calculating taxable income.
  • Some systems base tax on current-period taxable income, while others base it on prior-period taxable income.
<h3>To find the current earnings and profit for one year:</h3>

Income + Installment sale = 500,000 + 25,000 = $525,000

Income taxes + tax-exempt income = 170,000 + 1000 = $171,000

525,000 - 171,000 = $354,000

Therefore, the corporation's current earnings and profits for year one would be (A) $354,000.

Know more about taxable income here:

brainly.com/question/26316390

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Complete question:

Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $170,000. Not included in the computation was a disallowed meal and entertainment expense of $2,000, tax-exempt income of $1,000, and deferred gain on an installment sale of $25,000. The corporation's current earnings and profits for year 1 would be:

A) $354,000.

B) $524,000.

C) $500,000.

D) $331,000.

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involve the current receptionist in the decision process.

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When changes are to be made that will affect an employee, the best way to reduce resistance to the change is to involve the employee in the decision-making process.

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Ordinary repairs meet all of the following criteria except: Multiple Choice Are expenditures to keep an asset in good operating
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the money supply represents the amount of money the federal reserve bank makes available for people to buy goods and services. q
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The main source of income for the Federal Reserve System is interested in US government assets that the Federal Reserve has purchased through open market activities.

<h3>What determines the supply of money?</h3>

The Central Bank controls the money supply through its "monetary policy," and the economy must function with that predetermined amount of money. The money supply is seen as entirely vertical because the economy has no bearing on its amount (on models).

By increasing or decreasing the monetary base, the Fed can regulate the amount of money in circulation. The amount of money in circulation plus the deposits that depository institutions have with the Federal Reserve make up the monetary base, which is correlated with the size of the Fed's balance sheet.

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