: Lance Company, an accrual basis corporation, reported taxable income of $1,560

ID: 2504184 • Letter: #

Question

: Lance Company, an accrual basis corporation, reported taxable income of $1,560,000

for 2013. Included in the computation were the following:

MACRS depreciation of $200,000, S/L would have bee $120,000

Net Capital loss carryover of $10,000 from 2012

Net Operating Loss carryover of $25,000 from 2012

Not Included were the following:

Tax Exempt income of $5,000

Life insurance proceeds of $250,000

Excess charitable contributions of $2,500 to be carryover to 2013

Tax-Deferred gain of $20,000 on a like kind exchange

Federal income tax refund from 2012 of $30,000

Nondeductible insurance premiums of $3,500

Lance Company paid federal income taxes of $496,500. The company

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