Murrelet Corporation is a calendar year taxpayer that holds S status.For the current year,it had the following transactions:
Sales
$500,000
Cost of goods sold
(400,000)
Interest on City of Charlotte bonds
5,000
Capital gains and losses
Long-term gain (securities held as investments)
8,000
Long-term gain (antique car collection)
20,000
Short-term loss
(2,000)
Charitable contributions
(4,000)
Dividends received from another corporation (1% ownership)
9,000
Amortization of organizational expenditures
(1,000)
Payroll expenses
(80,000)

a.What is Murrelet Corporation's taxable income?
b.What are the separately stated items?

Question

Murrelet Corporation is a calendar year taxpayer that holds S status.For the current year,it had the following transactions:
Sales
$500,000
Cost of goods sold
(400,000)
Interest on City of Charlotte bonds
5,000
Capital gains and losses
Long-term gain (securities held as investments)
8,000
Long-term gain (antique car collection)
20,000
Short-term loss
(2,000)
Charitable contributions
(4,000)
Dividends received from another corporation (1% ownership)
9,000
Amortization of organizational expenditures
(1,000)
Payroll expenses
(80,000)
​
a.What is Murrelet Corporation's taxable income?
b.What are the separately stated items?

Quizplus · Accepted Answer

The Answer of Murrelet Corporation is a calendar year taxpayer that holds S status.For the current year,it had the following transactions:
Sales
$500,000
Cost of goods sold
(400,000)
Interest on City of Charlotte bonds
5,000
Capital gains and losses
Long-term gain (securities held as investments)
8,000
Long-term gain (antique car collection)
20,000
Short-term loss
(2,000)
Charitable contributions
(4,000)
Dividends received from another corporation (1% ownership)
9,000
Amortization of organizational expenditures
(1,000)
Payroll expenses
(80,000)
​
a.What is Murrelet Corporation's taxable income?
b.What are the separately stated items?

Murrelet Corporation Is a Calendar Year Taxpayer That Holds S