Johnson Co. is a CCPC with active business income of $350,000 in 20xx. The company engages in retail and wholesale activities. Capital gains recognized by the company in 20xx totaled $84,000.
Johnson Co. will utilize a net capital loss carry-over of $28,000 on its 20xx tax return.
Required:
Applying tax rates and amounts for 2019, calculate the following for Johnson Co. for 20xx:
a) Net Income for Tax Purposes
b) Taxable Income
c) Federal Tax

Question

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The Answer of Johnson Co. is a CCPC with active business income of $350,000 in 20xx. The company engages in retail and wholesale activities. Capital gains recognized by the company in 20xx totaled $84,000.
Johnson Co. will utilize a net capital loss carry-over of $28,000 on its 20xx tax return.
Required:
Applying tax rates and amounts for 2019, calculate the following for Johnson Co. for 20xx:
a) Net Income for Tax Purposes
b) Taxable Income
c) Federal Tax