Robinson Corporation has income per books before tax of $2,000,000. In computing income per books, Robinson included $8,000 interest income from tax-exempt municipal bonds and $500,000 life insurance proceeds it received as the beneficiary on a policy for the corporate vice president who was killed in a plane crash while on company business, and it deducted $50,000 for business meals and entertainment expenses, $4,000 for premiums on officers' life insurance policies (the corporation is the beneficiary for these policies), $40,000 for a series of advertisements on current products, and $500 for fines. What is Robinson Corporation's taxable income?

Question

Quizplus · Accepted Answer

$2,000,000 - $8,000 - $500,000 + ($50,000 x .5) + $4,000 + $500 = $1,521,500

Robinson Corporation Has Income Per Books Before Tax of $2,000,000