Question

In: Accounting

1.In the current year, Apricot Corporation had taxable income of $120,000. Included in taxable income was...

1.In the current year, Apricot Corporation had taxable income of $120,000. Included in taxable income was a $10,000 capital gain. The $120,000 of taxable income does not include a $15,000 capital loss carryforward available from the previous year. What is Apricot Corporation's current year income tax liability before any tax credits?

Group of answer choices

$22.050

$21,000

$23,100

$25,200

None of these

2.

An S corporation files a Form 1120S.

Group of answer choices

True

False

Expert Solution

Answer 1.

Please find the attached solution in image.

Answer 2.

An s corporation files a form 1120 s then the above solution is false.

Because

To qualify for S corporation status, the corporation must meet the following requirements:

Be a domestic corporation
Have only allowable shareholders
- May be individuals, certain trusts, and estates and
- May not be partnerships, corporations or non-resident alien shareholders
Have no more than 100 shareholders
Have only one class of stock
Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).

ekkarill92 answered 1 year ago

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