ACC - Abbott Corporation
Question # 00035356
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Updated on: 12/08/2014 11:18 PM Due on: 12/09/2014
Submit your answer in an Excel file, showing all calculations clearly and explaining your answers where necessary.
Abbott Corporation has book income before federal income tax of $380,000. Deductions in arriving at book income included: charitable donation, $60,000; parking fines for delivery vehicles, $2,200; meals and entertainment expense, $13,400; depreciation expense, $37,300. MACRS depreciation is $40,720. Book income includes dividends from large public corporations of $20,000. Abbott has an NOL carryover to the current year of $12,000.
a) Compute Abbott’s taxable income.
b) Compute Abbott’s tax liability.
Abbott Corporation has book income before federal income tax of $380,000. Deductions in arriving at book income included: charitable donation, $60,000; parking fines for delivery vehicles, $2,200; meals and entertainment expense, $13,400; depreciation expense, $37,300. MACRS depreciation is $40,720. Book income includes dividends from large public corporations of $20,000. Abbott has an NOL carryover to the current year of $12,000.
a) Compute Abbott’s taxable income.
b) Compute Abbott’s tax liability.
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Solution: ACC - Abbott Corporation Solution