Johnson Co. is a CCPC with active business income of $350,000 in 20X2. The company engages in retail and wholesale activities. Capital gains in 20X0 were
$84,000.
Johnson Co. will utilize a net capital loss carry-over of $28,000 on its 20X2 tax return.
Required:
Calculate the following for Johnson Co. for 20X2:
a) Net Income for Tax Purposes
b) Taxable Income
c) Federal tax liability

Question

Quizplus · Accepted Answer

The Answer of Johnson Co. is a CCPC with active business income of $350,000 in 20X2. The company engages in retail and wholesale activities. Capital gains in 20X0 were
$84,000.
Johnson Co. will utilize a net capital loss carry-over of $28,000 on its 20X2 tax return.
Required:
Calculate the following for Johnson Co. for 20X2:
a) Net Income for Tax Purposes
b) Taxable Income
c) Federal tax liability