The Cat Corporation had $20,000 of book income in the current year.The following is a list of differences between federal and book income and expenses: $\begin{array}{ll}
\text { Federal income tax expense deducted for books }&\$4,400\\text { Depreciation deducted on books }&\$3,000\\text { Depreciation deducted on tax return }&\$14,000\50 \text { percent of meals expense not allowed as an expense for taxes }&\$2,000\\text {Charitable contributions carried over from prior years and deducted }\\text { on the current year tax return }&\$2,300\\text { Current year taxable gain on an installment sale which was reported }\\text { on the books in a previous year }&\$5,000\\text { Prepaid interest not deductible in the current year for tax purposes but }\\text { claimed as a deduction for book income purposes }&\$10,000\\text { Nondeductible club dues}&\$1,000
\end{array}$
Based on the above information,calculate the Cat Corporation's federal taxable income for the year.Show your calculations.

Question

The Cat Corporation had $20,000 of book income in the current year.The following is a list of differences between federal and book income and expenses: $\begin{array}{ll}
\text { Federal income tax expense deducted for books }&\$4,400\\text { Depreciation deducted on books }&\$3,000\\text { Depreciation deducted on tax return }&\$14,000\50 \text { percent of meals expense not allowed as an expense for taxes }&\$2,000\\text {Charitable contributions carried over from prior years and deducted }\\text { on the current year tax return }&\$2,300\\text { Current year taxable gain on an installment sale which was reported }\\text { on the books in a previous year }&\$5,000\\text { Prepaid interest not deductible in the current year for tax purposes but }\\text { claimed as a deduction for book income purposes }&\$10,000\\text { Nondeductible club dues}&\$1,000
\end{array}$
 Based on the above information,calculate the Cat Corporation's federal taxable income for the year.Show your calculations.

Quizplus · Accepted Answer

The Answer of The Cat Corporation had $20,000 of book income in the current year.The following is a list of differences between federal and book income and expenses: $\begin{array}{ll}
\text { Federal income tax expense deducted for books }&\$4,400\\text { Depreciation deducted on books }&\$3,000\\text { Depreciation deducted on tax return }&\$14,000\50 \text { percent of meals expense not allowed as an expense for taxes }&\$2,000\\text {Charitable contributions carried over from prior years and deducted }\\text { on the current year tax return }&\$2,300\\text { Current year taxable gain on an installment sale which was reported }\\text { on the books in a previous year }&\$5,000\\text { Prepaid interest not deductible in the current year for tax purposes but }\\text { claimed as a deduction for book income purposes }&\$10,000\\text { Nondeductible club dues}&\$1,000
\end{array}$
 Based on the above information,calculate the Cat Corporation's federal taxable income for the year.Show your calculations.

The Cat Corporation Had $20,000 of Book Income in the Current