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valina [46]
3 years ago
15

Madison Corporation reported taxable income of $400,000 in 20 X 3 and accrued federal income taxes of $136,000. Included in the

computation of taxable income was regular depreciation of $200,000 (E&P depreciation is $60,000) and a net capital loss carryover of $20,000 from 20X2 utilized in 20X3. The corporation's current earnings and profits for 20X3 would be:
A. $424,000B. $404,000C. $380,000D. $344,000
Business
1 answer:
salantis [7]3 years ago
8 0

Answer:

A. $424,000

Explanation:

current income = Taxable income - Federal tax + Depreciation disallowed + net capital loss carryover          

= $400,000 - $136,000 +  ($200,000 - $60,000) + $20,000

=  $424000

Therefore, The corporation's current earnings and profits for 20X3 would be $424000.

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3 years ago
Suppose that $2000 is loaned at a rate of 11.5% , compounded semiannually. assuming that no payments are made, find the amount o
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This problem is solved by using the compound interest formula:
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6 0
3 years ago
If sales are $904,000 in 2019 and this represents a 13% increase over sales in 2018, what were sales in 2018?
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3 years ago
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