In Each of the Following Independent Situations, Calculate Accumulated Taxable

question 41

Essay

In each of the following independent situations, calculate accumulated taxable income, if any. Assume the corporation is not a mere holding or investment company. $$\begin{array} { l c c } & \text { Copper Corporation } & \text { Bronze Corporation } \\\hline \text { Taxable income } & \$ 150,000 & \$ 500,000 \\\text { Accrued Federal income taxes } & 41,750 & 170,000 \\\text { Capital loss adjustment } & 2,000 & \\\text { Net LTCG } & & 42,000 \\\text { Tax on LTCG } & & 14,280 \\\text { Charitable contributions in excess of } 10 \% & 15,000 & \\\text { NOL deduction } & 24,000 & \\70 \% \text { dividends received deduction } & &35,000 \\ \text { Dividends paid deduction } & 7,200 & 18,000\\ \text { Accumulated earnings credit } & 44,000 & 92,500 \\\hline\end{array}$$

---

Definitions:

New Memories

The formation and storing of information and experiences that can be recalled at a later time, a fundamental process in learning.

Inability

The state of being unable to perform a function or action due to physical or mental limitations.

Recall

The mental process of retrieving information from the past.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.