The Guava Corporation has book net income of $90,000 for 2013.Included in this figure are the following items which are reported on the corporation's Schedule M-1,Reconciliation of Income Loss)per Books with Income per Return. $\begin{array}{ll}
\text { 1. Federal income tax expense }&\$22,000\\text { 2. Depreciation deducted on books, not deductible for tax purposes }&\$5,000\\text { 3. Deduction for } 50 \text { percent of meal s and entertainment expense not }\\text { allowed for tax purposes }&\$3,000\\text { 4. Deduction for payroll tax penalties not allowed for tax purposes }&\$2,000\\text { 5. Tax exempt interest income included in book income but not in tax }\\text { return income }&\$10,000
\end{array}$
Based on the above information,calculate the Guava Corporation's taxable income for the year.Show your calculations.

Question

The Guava Corporation has book net income of $90,000 for 2013.Included in this figure are the following items which are reported on the corporation's Schedule M-1,Reconciliation of Income Loss)per Books with Income per Return. $\begin{array}{ll}
\text { 1. Federal income tax expense }&\$22,000\\text { 2. Depreciation deducted on books, not deductible for tax purposes }&\$5,000\\text { 3. Deduction for } 50 \text { percent of meal s and entertainment expense not }\\text { allowed for tax purposes }&\$3,000\\text { 4. Deduction for payroll tax penalties not allowed for tax purposes }&\$2,000\\text { 5. Tax exempt interest income included in book income but not in tax }\\text { return income }&\$10,000
\end{array}$
 Based on the above information,calculate the Guava Corporation's taxable income for the year.Show your calculations.

Quizplus · Accepted Answer

The Answer of The Guava Corporation has book net income of $90,000 for 2013.Included in this figure are the following items which are reported on the corporation's Schedule M-1,Reconciliation of Income Loss)per Books with Income per Return. $\begin{array}{ll}
\text { 1. Federal income tax expense }&\$22,000\\text { 2. Depreciation deducted on books, not deductible for tax purposes }&\$5,000\\text { 3. Deduction for } 50 \text { percent of meal s and entertainment expense not }\\text { allowed for tax purposes }&\$3,000\\text { 4. Deduction for payroll tax penalties not allowed for tax purposes }&\$2,000\\text { 5. Tax exempt interest income included in book income but not in tax }\\text { return income }&\$10,000
\end{array}$
 Based on the above information,calculate the Guava Corporation's taxable income for the year.Show your calculations.

The Guava Corporation Has Book Net Income of $90,000 for 2013.Included