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 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.
Compute Luong's federal taxable income and regular tax liability.
Note: Enter your answers in whole dollars not in millions.
Prepare a Schedule M page Form reconciling Luong's book and taxable income.
Note: Any Expenses Line and Deductions Line that are not included under Depreciation, Charitable Contributions, and Travel and Entertainment should be combined in the corresponding line item "Other". Enter all amounts as positive. Enter your answers in whole dollars not in millions.
Schedule M Reconciliation of Income Loss per Books With Income per Return
Note: The corporation may be required to file Schedule M See instructions.
THIS FORM IS A SIMULATION OF AN OFFICIAL US TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. c McGrawHill Education.
