Question
In: Accounting
HOYLE CORPORATION SOLD A BUILDING FOR 200,000 THIS YEAR.THE TAX BASISWAS 235,00 AND BOOK VALUE WAS...
HOYLE CORPORATION SOLD A BUILDING FOR 200,000 THIS YEAR.THE TAX BASISWAS 235,00 AND BOOK VALUE WAS 250,000. HOYLE HAS BOOK INCOME BEFORE TAXES OF 3,000.000. WHAT IS AMOUNTOF TAXABLE INCOME ON SCHEDULE M1 FORM 1120 FOR THE YEAR
3,015,000
3,035,000
3,050,000
3,235,000
Solutions
Expert Solution
The answer is 3,015,000
Schedule M1 is the part of the tax return that explains what's different between the Books and the tax return.
Calculation of Taxable Income
| BOOK INCOME BEFORE TAXES | 3,000,000 |
| Add: Loss as per Books* | 50,000 |
| Less: Loss as per Income tax* | (35,000) |
| TAXABLE INCOME | 3,015,000 |
| Sale Value | 200,000 |
| Book value | 250,000 |
| Loss as per books | (50,000) |
| Sale Value | 200,000 |
| Tax Basis | 235,000 |
| Loss as per Income Tax | (35,000) |
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