FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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In 2020, Merced, Inc. (a C-corporation) had net operating income of $20,000. During 2021, Merced also had long-term
Determine Merced’s tax liability of 2020.
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- The Dakota Corporation had a 2021 taxable income of $31,500,000 from operations after all operating costs but before (1) interest charges of $8,400,000, (2) dividends received of $740,000, (3) dividends paid of $5,200,000, and (4) income taxes (the firm’s tax rate is 21 percent).a. Calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability b. What are Dakota’s average and marginal tax rates on taxable income? (Round your answers to 2 decimal places.) Average tax rate % Marginal tax rate %arrow_forwardDuring 2020, Gorilla Corporation, a calendar year C corporation, has net short-term capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of $460,000. Prior years' transactions included the following: 2016 net short-term capital gains $40,000 2017 net long-term capital gains 18,000 2018 net short-term capital gains 25,000 2019 net long-term capital gains 20,000 If an amount is zero, enter "0". a. Answer the following to determine how are the capital gains and losses treated on Gorilla's 2020 tax return. How much is Gorilla's net capital loss for 2020?$ What is the amount of the capital loss deduction on Gorilla's 2020 tax return?$ Any excess net capital loss is carried back or forward as a short-term capital loss . b. Determine the amount of the 2020 capital loss that is carried back to each of the previous years. Carried back to 2017 $ Carried back to 2018 $ Carried back to 2019 $…arrow_forwardThe Dakota Corporation had a 2021 taxable income of $20,000,000 from operations after all operating costs but before (1) interest charges of $3,800,000, (2) dividends received of $320,000, (3) dividends paid of $2,200,000, and (4) income taxes (the firm’s tax rate is 21 percent).a. Calculate Dakota’s income tax liability. (Round your answer to the nearest dollar amount.) With a marginal and average tax rate of 21% The income tax liability is NOT 3,469,200arrow_forward
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