Champ Corporation has taxable income for 2018 of $20,000. For 2018, Champ had tax exempt interest...

Champ Corporation has taxable income for 2018 of $20,000. For 2018, Champ had tax exempt interest of $6,000 and received $25,000 of proceeds from a term life insurance policy, paid to the corporation as a beneficiary by reason of the death of a corporate officer. The premium on the policy was $1000 for 2018. The corporation paid charitable contirbutions in 2018 of $7000 in excess of the amount allowed as an income tax deduction. Ignoring federal income taxes, what are Champ Corporations earnings and profits for 2018?

Solutions

Expert Solution

Taxable Income	$20,000
Add: interest	6,000
Add: Insurance claim	25,000
Less: Premium	1,000
Less: Charitable contribution	7,000
Earnings and profit for 2018	$43,000

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

XYZ corporation had a $20,000 net loss in 2018. Kitty has $2000 income in 2016 and...

XYZ corporation had a $20,000 net loss in 2018. Kitty has $2000 income in 2016 and $8000 income in 2017. Kitty is c corporation tax client. How do you handle this case and what you can tell her to write off on her tax?

Amazonian Corporation has the following tax information: Year Taxable Income Tax Rate 2017 $1,000,000 35% 2018...

Amazonian Corporation has the following tax information: Year Taxable Income Tax Rate 2017 $1,000,000 35% 2018 $900,000 30% 2019 $800,000 28% A. In 2020, Amazonian incurred a net operating loss (NOL) of $350,000, which the company elected to carry back. The statutory corporate tax rate in 2020 and for all future years is 22%. Prepare Amazonian's journal entry to record the effect of the loss carry back. B. Assume instead that in 2020 Amazonian incurred an NOL of $2,000,000 and...

Current E&P does not include tax-exempt interest income. life insurance proceeds where the corporation is the...

Current E&P does not include tax-exempt interest income. life insurance proceeds where the corporation is the beneficiary. federal income tax refunds from prior years. AM of the above are included.

) Marin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015...

) Marin Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $303,000 36% $109,080 2016 322,000 31% 99,820 2017 395,000 31% 122,450 In 2018, Marin suffered a net operating loss of $812,000, which it elected to carry back. The 2018 enacted tax rate is 32% (and this rate is expected to be in use for the foreseeable future). Prepare Marin’s entry to record the effect of the loss carryback (and carryforward).

Individual tax calculation in Ontario (2018): If an Ontarian has a taxable income of $152,000, what...

Individual tax calculation in Ontario (2018): If an Ontarian has a taxable income of $152,000, what will be the: Total taxes payable Average tax rate Marginal tax rate

Checkers Corporation Checkers Corporation had a tax liability for 20X7 of $20,000 based on a tax...

Checkers Corporation Checkers Corporation had a tax liability for 20X7 of $20,000 based on a tax rate of 40%, but the accounting staff needs your help in determining the tax expense and deferred tax amounts for 20X7. The enacted tax rates for the future periods are 35% for 20X8 – 20Y2, and then 30% for 20Y3 – 20Y6. Checkers does not believe that temporary differences can be reasonably projected beyond those periods. The taxable income for 20X8 was $100,000. Checkers...

Larkspur Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $294,000...

Larkspur Corporation had the following tax information. Year Taxable Income Tax Rate Taxes Paid 2015 $294,000 32% $94,080 2016 319,000 27% 86,130 2017 396,000 27% 106,920 In 2018, Larkspur suffered a net operating loss of $487,000, which it elected to carry back. The 2018 enacted tax rate is 26%. Prepare Larkspur’s entry to record the effect of the loss carryback.

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

Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $34 million and taxable...

Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $34 million and taxable income of $44 million for the year ended December 31, 2018. The 2018 tax rate is 35%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows: 2019 $ 4 million 30 % 2020 2 million 30 % 2021 2 million 30 % 2022 2 million...

Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $15 million and taxable...

Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $15 million and taxable income of $23 million for the year ended December 31, 2018. The 2018 tax rate is 40%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows: 2019 $ 3 million 30 % 2020 1 million 30 % 2021 2 million 30 % 2022 2 million...

Subjects