In each of the following independent cases, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Required: a. Company A has ATI of $82,000 and business interest expense of $23,000. b. Company B has ATI of $108,000, business interest expense of $44,000, and business interest income of $3,200. c. Company C has taxable income of $59,600 which includes business interest expense of $64,800 and depreciation of $56,000. Amount a. Carryforward b. Carryforward c. Carryforward

Patriot Corporation reports the following results for the current year: View the current year results. Read the requirements. Requirement a. What are Patriot's taxable income and income tax liability for the current year? Begin by computing Patriot's taxable income. (If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.) Gross income Minus: Taxable income Requirements a. What are Patriot's taxable income and income tax liability for the current year? b. How would your answers to Part a change if Patriot's short-term capital loss is $12,000 instead of $2,000? Print Done - X Current Year Results Gross profits on sales Long-term capital gain Long-term capital loss Short-term capital gain Short-term capital loss Operating expenses Print $ 159,000 7,000 8,000 9,000 2,000 70,000 Done X

Vishal

The following information applies to Carla Vista Corporation, which reports under IFRS. 1. Prior to 2022, taxable income and accounting income were identical. 2. Accounting income was $1.7 million in 2022 and $1.45 million in 2023. 3. On January 1, 2022, equipment costing $2.00 million was purchased. It is being depreciated on a straight-line basis over eight years for financial reporting purposes, and is a Class 8-20% asset for tax purposes. Tax-exempt interest income of $60,000 was received in 2023. 4. 5. The tax rate is 30% for all periods. 6. Taxable income is expected in all future years. 7. Carla Vista had 100,000 common shares outstanding throughout 2023. (a) Calculate the amount of capital cost allowance and depreciation expense for 2022 and 2023, and the corresponding carrying amount and undepreciated capital cost of the depreciable assets at the end of 2022 and 2023. 2022 $ 2023 Capital Cost Allowance Undepreciated Depreciation Net Book Capital Cost Expense Value $ $ $

6.  On December 31, 2021, ABC has earned financial income before tax of P3,240,850. The tax rate applicable for the current and future years is 30%. For purposes of determining the taxable income, the following items are considered for analysis and reconciliation: On January 1, 2021, ABC has acquired a depreciable property amounted to P1,000,000. For financial accounting purposes, it uses straight line method to depreciate it and sum of the year’s digit method for income tax purposes (with depreciation rate from year 1 to year 10 of 10/55, 9/55, 8/55, 7/55, 6/55, 5/55, 4/55, 3/55, 2/55, 1/55, respectively). The useful life of the asset is 10 years with no residual value. 3 years prepaid rent of P600,000 (P200,000 a year) paid December 31, 2021 that is applicable for the next 3 years starting 2022. Dividend income (received in cash) of P250,000 that is subject to 20% tax rate. Interest income on deposit (already credited to ABC’s deposit account) of P150,000 with 20% applicable tax…

For each of the following transactions, indicate wheth-er a special adjustment must be made in computing R Corporation’s current E&P. Answer assuming that E&P has already been adjusted for current taxable income. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000. The corporation received $5,000 of interest income from its investment in tax-exempt bonds. The corporation received a $10,000 dividend from General Motors Corporation. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code § 179. The corporation reported a § 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000.