Check figures for M-1 Line 1: Jonathan Corp. 386,250; Garrett Corp. -174,100 Line 10: Jonathan Corp. 122,000 Garrett Corp 265,000 Based in part on problems from leading textbooks.Jonathan Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2019. Net income per books after-tax: $386,250 Federal income tax per books: $30,050 Tax-exempt interest income: $5,000 Life insurance proceeds received as a result of death of corporate president: $300,000 Nondeductible penalties: $2,500 Interest on loan to purchase tax-exempt bonds: $1,700 Excess of capital losses over capital gains: $330,000 Premiums paid on life insurance policy on life of Eagle's president: $4,200 Excess of tax depreciation over book depreciation: $3,000The following information for 2019 relates to Garrett Corporation, a calendar year accrual method taxpayer. Net income per books after-tax: $174,100 Federal income tax per books: $86,600 Tax-exempt interest income: $4,500 MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes: $7,200 Excess of capital loss over capital gains: $9,400 Non-deductible meals and entertainment: $5,500 Interest on loan to purchase tax-exempt bonds: $1,100 Based on the above information, use M-1 of Form 1120, which is available on the IRS website, to determine Garrett Corporation's taxable income for 2019.
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Submitted by Angela M. Feb. 14, 2023 03:34 p.m.
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Net income per books after-tax: $174,100Federal income tax per books: $86,600Tax-exempt interest income: $4,500MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes: $7,200Excess of capital loss over capital gains: $ ...
Net income per books after-tax: $174,100Federal income tax per books: $86,600Tax-exempt interest income: $4,500MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes: $7,200Excess of capital loss over capital gains: $9,400Non-deductible meals and entertainment: $5,500Interest on loan to purchase tax-exempt bonds: $1,100Taxable income per books = Net income per books after-tax - Federal income tax per books + Tax-exempt interest income + MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes + Excess of capital loss over capital gains + Non-deductible meals and entertainment + Interest on loan to purchase tax-exempt bondsTaxable income per books = $174,100 - $86,600 + $4,500 + $7,200 + $9,400 + $5,500 + $1,100Taxable income per books = $115,200
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Check figures for M-1 Line 1: Jonathan Corp. 386,250; Garrett Corp. -174,100 Line 10: Jonathan Corp. 122,000 Garrett Corp 265,000 Based in part on problems from leading textbooks.Jonathan Corporation, a calendar year and accrual method taxpayer, provides the following information and asks you to prepare Schedule M-1 for 2019. Net income per books after-tax: $386,250 Federal income tax per books: $30,050 Tax-exempt interest income: $5,000 Life insurance proceeds received as a result of death of corporate president: $300,000 Nondeductible penalties: $2,500 Interest on loan to purchase tax-exempt bonds: $1,700 Excess of capital losses over capital gains: $330,000 Premiums paid on life insurance policy on life of Eagle's president: $4,200 Excess of tax depreciation over book depreciation: $3,000The following information for 2019 relates to Garrett Corporation, a calendar year accrual method taxpayer. Net income per books after-tax: $174,100 Federal income tax per books: $86,600 Tax-exempt interest income: $4,500 MACRS depreciation in excess of straight-line depreciation used for financial accounting purposes: $7,200 Excess of capital loss over capital gains: $9,400 Non-deductible meals and entertainment: $5,500 Interest on loan to purchase tax-exempt bonds: $1,100 Based on the above information, use M-1 of Form 1120, which is available on the IRS website, to determine Garrett Corporation's taxable income for 2019.
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