Dexter Corporation Reports the Following Results for the Current Year

question 54

Essay

Dexter Corporation reports the following results for the current year:
$\begin{array} { l } \text { Gross income from operations}&\$90,000\\ \text {Dividends from less than \( 20 \% \)-owned corporations }&50,000\\ \text {Operating expenses }&75,000\\ \text {Charitable contributions }&10,000\\\end{array}$
In addition,Dexter has a $25,000 NOL carryover from the preceding tax year.What is Dexter's taxable income for the current year?

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Definitions:

Income Quintile

A statistical measure dividing the population into five equal groups according to their income level to analyze economic inequality.

Lump-Sum Tax

A tax that is a fixed amount, not varying with the taxpayer’s income level or expenditure, making it independent of the taxpayer’s behavior.

Excise Tax

An excise tax is a tax charged on specific goods and services, such as gasoline, cigarettes, and alcohol, typically to discourage their use or generate revenue.

Benefits Principle

A taxation theory that suggests taxes should be levied according to the benefits received by the taxpayer from government services.