Luong Corporation, a calendar year, accrual basis corporation, reported $ million of net income after tax on its financial statements
prepared in accordance with GAAP. The corporation's books and records reveal the following information:
Luong's federal income tax expense per books was $
Luong's book income included $ of dividends received from a domestic corporation in which Luong owns a percent stock
interest, and $ of dividends from a domestic corporation in which Luong owns a percent stock interest.
Luong recognized $ of capital losses this year and no capital gains.
Luong recorded $ of book expense for meals not provided by a restaurant and $ of book expense for entertainment
costs.
Luong's depreciation expense for book purposes totaled $ MACRS depreciation was $
Required:
a Compute Luong's federal taxable income and regular tax liability.
b Prepare a Schedule M page Form reconciling Luong's book and taxable income.
Complete this question by entering your answers in the tabs below.
Required B
Compute Luong's federal taxable income and regular tax liability.
Note: Enter your answers in whole dollars not in millions.
