For the tax year, Ace Corporation had net income per books of $40,000, tax-exemp

Question

For the tax year, Ace Corporation had net income per books of $40,000, tax-exempt interest of $2,000, excess contributions of $1,000, meals in excess of the 50% limitation of $4,000, and federal income tax of $6,000. Using this information, determine Ace Corporation’s taxable income as it would be shown on Schedule M-1 of the corporate tax return. A. $49,000 B. $53,000 C. $38,000 D. $44,000 For the tax year, Ace Corporation had net income per books of $40,000, tax-exempt interest of $2,000, excess contributions of $1,000, meals in excess of the 50% limitation of $4,000, and federal income tax of $6,000. Using this information, determine Ace Corporation’s taxable income as it would be shown on Schedule M-1 of the corporate tax return. A. $49,000 B. $53,000 C. $38,000 D. $44,000

Explanation / Answer

correct option is "A"

Income as per books 40000 Federal income tax 6000 excess contribution as per book 1000 meals in excess of the 50% limitation 4000 tax-exempt interest (2000) Taxable income 49000

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