Calvin Corporation,has the Following Items of Income and Expense for the Current

question 10

Essay

Calvin Corporation,has the following items of income and expense for the current year.Calculate (a)Calvin's taxable income and (b)income tax liability.
$\begin{array}{lr} \text { Sales revenue } &\$ 500,000 \\ \text { Cost of goods sold } &\underline{360,000}\\ \text { Gross profit } &{\$ 140,000} \\\\ \text { Other revenue: } &\\ \text {Dividends (less than 2 \% owner ship) } &\$ 5,000 \\ \text { Interest received from municipal bonds } &30,000 \\\\ \text { Expenses: } &\\ \text {Utilities } &\$ 25,000 \\ \text {Insurance } &15,000 \\ \text {Meals and entertainment } &60,000 \\ \text { Charitable contributions } &10,000 \\ \text { Net operating loss (from the previous year) } &\$ 60,000\end{array}$

---

Definitions:

Coppertone Products

Specifically formulated skincare products by the brand Coppertone, known for their sun protection lotions and creams.

Skin

The largest organ of the human body, serving as a protective barrier against environmental hazards, regulation of body temperature, and sense of touch.

Anti-aging

Products or treatments designed to prevent or reduce the effects and appearance of aging, especially on the skin.

Asian Americans

Americans of Asian descent, comprising a diverse group with origins in East, Southeast, or South Asia.