Course ProjectAddress each of the following scenarios in your report.Tasks:During the current year,...

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Course ProjectAddress each of the following scenarios in your report.Tasks:During the current year, Carlson Corporation (a calendar year taxpayer) had the following income and expenses:Income from operations$350,000Expenses from operations225,000Qualifying dividends from domestic corporation in which Carlson owns a 40% interest27,000NOL carryover from prior year2,000On October 1, Carlson Corporation made a contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items).Determine Carlson Corporation’s charitable contribution deduction for the current year.ACME Corporation, an accrual basis taxpayer, was formed and began operations on October 1, 2016. The following expenses were incurred during the first tax year (October 1 to December 31, 2016) of operations:Expenses of temporary directors and of organizational meetings$15,0000Fee paid to the state of incorporation8,500Accounting services incident to organization13,500Legal services for drafting the corporate charter and bylaws16,000Expenses incident to the printing and sale of stock certificates5,000$58,000Assume ACME Corporation makes an appropriate and timely election under § 248(c) and the related Regulations. What is the maximum organizational expense ACME may write off for tax year 2016?The following information for 2016 relates to WeekEnders Corporation, a calendar year, accrual method taxpayer.Net income per books (after-tax)$174,100Federal income tax expense per books86,600Tax-exempt interest income4,500MACRS depreciation in excess of straight-line depreciation used for financial statement purposes7,200Excess of capital loss over capital gains9,400Nondeductible meals and entertainment5,500Interest on loan to purchase tax-exempt bonds1,100Based on the above information, use Schedule M—1 of Form 1120, which is available on the IRS website, to determine Weekly's taxable income for 2016.Submission Guidelines:Submit your answers in a 2–3 page Microsoft Word document. Also, submit the completed Federal Tax Form 1040 where required.

Hari Kiran · Accepted Answer

Sheet1
				Dividends received from 20% or more owned domestic corporations
				65% of Dividends received is exempt. 
				Income from Operations		350000
				Expenses		225000
				Business Income		125000
				Dividends received 	27000
				Less:

Course Project Address each of the following scenarios in your report . Tasks: During the current year, Carlson Corporation (a calendar year taxpayer) had the following income and expenses: Income...

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Income from operations	$350,000
Expenses from operations	225,000
Qualifying dividends from domestic corporation in which Carlson owns a 40% interest	27,000
NOL carryover from prior year	2,000

Expenses of temporary directors and of organizational meetings	$15,0000
Fee paid to the state of incorporation	8,500
Accounting services incident to organization	13,500
Legal services for drafting the corporate charter and bylaws	16,000
Expenses incident to the printing and sale of stock certificates	5,000
	$58,000

Net income per books (after-tax)	$174,100
Federal income tax expense per books	86,600
Tax-exempt interest income	4,500
MACRS depreciation in excess of straight-line depreciation used for financial statement purposes	7,200
Excess of capital loss over capital gains	9,400
Nondeductible meals and entertainment	5,500
Interest on loan to purchase tax-exempt bonds	1,100