In 2018, a corp. had gross sales of $100,000,000 and business interest income of $20,000,000. a corp. had deductible business expenses (other than interest) of $60,000,000 and business interest expense of $35,000,000. a corp. had adjusted taxable income (adj. taxable income = taxable income without taking into account non-business income, business interest expense, business interest income or nol) of $40,000,000.

what amount, if any, of a corp.’s business interest expense deduction is disallowed in 2018?

what would your answer be (i. e. what amount of a corp’s business interest expense would be disallowed) if instead a corp. had gross sales of $1,000,000, business interest income of $200,000, deductible business expenses (other than interest) of $600,000, business interest expense of $350,000 and adjusted taxable income of $400,000? a corp’s gross sales have been $1m for the past 3 years.

You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?

The following balance sheet for the los gatos corporation was prepared by a recently hired accountant. in reviewing the statement you notice several errors. los gatos corporation balance sheet at december 31, 2018 assets cash $ 44,000 accounts receivable 86,000 inventories 57,000 machinery (net) 122,000 franchise (net) 32,000 total assets $ 341,000 liabilities and shareholders' equity accounts payable $ 54,000 allowance for uncollectible accounts 7,000 note payable 59,000 bonds payable 112,000 shareholders' equity 109,000 total liabilities and shareholders' equity $ 341,000 additional information: cash includes a $22,000 restricted amount to be used for repayment of the bonds payable in 2022. the cost of the machinery is $194,000. accounts receivable includes a $22,000 note receivable from a customer due in 2021. the note payable includes accrued interest of $7,000. principal and interest are both due on february 1, 2019. the company began operations in 2013. income less dividends since inception of the company totals $37,000. 52,000 shares of no par common stock were issued in 2013. 200,000 shares are authorized. required: prepare a corrected, classified balance sheet. (amounts to be deducted should be indicated by a minus sign.)

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?