Problem 13-18 (LO. 2) Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year. Income from services Salaries paid to employees Tax-exempt interest income Dividends from a corporation in which Penguin holds a 12% interest Short-term capital loss on the sale of stock Estimated Federal income taxes paid $400,000 70,000 24,000 Gross income 40,000 17,000 110,000 Penguin purchased 7-year MACRS property in the current year for $80,000 (current year percentage 14.29% ); it did not claim any § 179 - additional first-year depreciation. The property has a 10-year ADR midpoint life. a. Determine taxable income and current E & P for Penguin Corporation. When required, round your answers to the nearest dollar. 440,000 ✓

Problem 13-18 (LO. 2) Penguin Corporation (a cash basis, calendar year taxpayer) recorded the following income and expenses in the current year. Income from services Salaries paid to employees Tax-exempt interest income Dividends from a corporation in which Penguin holds a 12% interest Short-term capital loss on the sale of stock Estimated Federal income taxes paid $400,000 70,000 24,000 Gross income 40,000 17,000 110,000 Penguin purchased 7-year MACRS property in the current year for $80,000 (current year percentage 14.29% ); it did not claim any § 179 - additional first-year depreciation. The property has a 10-year ADR midpoint life. a. Determine taxable income and current E & P for Penguin Corporation. When required, round your answers to the nearest dollar. 440,000 ✓

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 5BCRQ

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