In the current year, the Best Corporation had sales revenue of $380,000, operating expenses of $390,000,...

In the current year, the Best Corporation had sales revenue of $380,000, operating expenses of $390,000, and charitable contributions totaling $9,000. In addition, the company received a $50,000 cash dividend from another domestic corporation, a company in which it held a 15 percent ownership interest. What is Best Corporation’s taxable income?

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Expert Solution

Particulars	Amount ($)	explanation
Sales Revenue	380,000
Add dividend	25,000	dividend received = 50,000 allowable deduction = 50% dividend taxable = 25,000
Total Income	405,000
Less Operating Expenses	(390,000)	Allowed to deduct as business expense as per tax laws
Less charitable deduction	(9,000)
Net Taxable income	6,000

Taxable income of Best corporation = $6,000

ekkarill92 answered 1 year ago

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