The business is a C corporation and T is a 50 percent owner.T is single and has no other tax information. Income from services $\quad$$\$ 100,000$
Net capital loss $\quad$2,200
Guaranteed compensation paid to $\mathrm { T } \quad 10,000$
Life insurance premium for $\mathrm { T }$,
payable to T's children $\quad$300
Other operating expenses $\quad 54,000$
The C corporation's taxable income is

Question

The business is a C corporation and T is a 50 percent owner.T is single and has no other tax information. Income from services $\quad$$\$ 100,000$
Net capital loss $\quad$2,200
Guaranteed compensation paid to $\mathrm { T } \quad 10,000$
Life insurance premium for $\mathrm { T }$,
payable to T's children $\quad$300
Other operating expenses $\quad 54,000$ 
The C corporation's taxable income is

Quizplus · Accepted Answer

The taxable income is calculated as follows: $100,000 (income from services) - $10,000 (guaranteed compensation) - $54,000 (other operating expenses) = $36,000. The net capital loss of $2,200 can be deducted up to $3,000, so it is fully deductible. Therefore, $36,000 - $2,200 = $33,800. The life insurance premium is not deductible, so the taxable income is $33,800. However, the closest option is $35,700, which suggests a possible error in the options or calculation.

The Business Is a C Corporation and T Is a 50