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Cruz Corporation reports the following results for the current year:
Gross sales S150,000
Long-term capital loss 10,000
Charitable contributions 10,000
Cost of goods sold 30,000
Short-term capital loss 5,000
Officer salaries 30,000
Client meals 4,000
Rent 12,000
Political contributions 3,000
Advertising expense 2,000
Salaries 10,000
Payroll taxes 3,200
Parking tickets 300
Officer life insurance 4,000
Repairs and maintenance 1,500
Dividends (40% owned domestic corp) 30,000
Federal income tax for 2019 10,000
Corporate State taxes for 2019 4,300
a. What are Cruzs taxable income and income tax liability?
b. What, if any, carrybacks and carryovers are available and to what years should they be carried to?
Cruz Corporation reports the following results for the current year:
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