Determines citrines taxable income for state

Assignment Help Taxation
Reference no: EM13502559

The local Episcopal Church operates a retail shop.  The inventory consists of the typical items sold by commercial gift shop sales are to tourists and 20% are to church members.  The net income of the gift shop, before the salaries of the three gift shop employees and any Federal income tax is $300,000.  The salaries of the employees total $80,000.

What is the tax liability for the church?______________________________

 Problem 1. Feeder Organization Calculation

Repair Habitat Inc., a § 501(c)(3) organization, receives the following revenues and incurs the following expenses.

Grant from Habitat for All Foundation                                  $150,000

Charitable contributions received                                            225,000

Expenses in carrying out its exempt mission                           300,000

Net income before taxes of Concrete Pour, Inc., a

Wholly owned for-profit subsidiary                              85,000

Concrete Pour, Inc. remits all of its after-tax profits   each year to Repair Habitat.  Calculate the amount of Federal income tax, if any, for Repair Habitat and for Concrete Pour.  Show your calculation in good form.

 Problem. 2 State Modifications

Citrine Corporation is subject to a corporate income tax only in State X.  The starting point in computing X taxable income is Federal taxable income.  Citrine's Federal taxable income is $400,000, which includes a $55,000 deduction for state income taxes.  During the year, Citrine received $150,000 interest on Federal obligations and $65,000 of interest on State Z obligations.  X does not allow a deduction for state income tax payments, but it does exclude interest earned on its own obligations.

Required:  Prepare a schedule in Good Form that determines Citrine's taxable income for State X purposes.  All items should be labeled.

Reference no: EM13502559

Describe what is meant by the term book income

Describe what is meant by the term book income? Which number in ZAGG's statement of operation captures this notion for fiscal 2012? Describe how a company's book income diff

How bad debt expense is determined for financial accounting

Compare and contrast how bad debt expense is determined for financial accounting purposes and how the deduction for bad debts is determined for accrual-method taxpayers.

What is her 2011 taxable income

Based on this case study information, determine Emily's itemized deductions. Which of these items can and cannot be listed as medical deductions? Why? What is her 2011 taxab

Prepare a federal deposit information worksheet

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

What is taxpayers correct and most favorable filing status

Bill (6), their son, lived with Carol the entire year. Carol has waived her right to Bill's exemption for 2015 by signing Form 8332. What is the taxpayer's correct and most f

What amount can katie claim as a tax deduction

Based on this information what amount can Katie claim as a tax deduction under s 25-10 ITAA 97 in the year ended 30 June 2012 (nearest $1)? Support your answer with refere

Advise periwinkle of its fbt consequences arising out

Advise Periwinkle of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2014 and how would y

Compute the amount of income tax expense

Assume for this part that firm's deferred tax assets are as stated above but that its deferred tax liabilities were $58,600 at beginning of 2009 and $47,100 at end of 2009. C


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd