Question

XYZ is a calendar-year corporation that began business on January 1, 2021. For the year, It reported the following Information in Its current-year audited income statement Notes with Important tax Information are provided below. Use Exhibit 16-6. AYZ corporation Incose statement For current year Book Income Kevenue fron sales Cost of Goods Sold (27, eee, ese) Grass profit $ 13,0ee, eee Other incone: Income from investment in corporate stock 3ee, eee 20, eee (4,000) 3,eee se, eee S 13,369, eee Interest incone Capital gains (Iosses) Gain or loss from disposition of fixed assets Hiscellaneous income Gross Income Expenses: Compensation (7,see,a004 Stock option compensation Advertising Repairs and Maintenance Rent (260, o00)s (1, 150, see) (75,00e) (22, eee) (41,000) (1,4ee, eee)? (70, eee) (500, nee)" Bad Debt expense Depreciation Harranty expenses Charitable donations Meals (all at restaurants) (11,000) Goodwill impairment (30, tee) 10 Organizational expenditures (44, ee) (14e, ee12 (11. 390, 00) 51,979,e00 other expenses Total expenses Incone before taxes Provision for income taxes Net Incone after taxes $1,579,eee 1. XYZ owns 30% of the outstanding Hobble Corporation (HC) stock. Hobble Corporation reported $1,000,000 of income for the year, XYZ accounted for Its Investment in HC under the equity method, and it recorded its pro rata share of HC's earnings for the year. HC aiso distributed a $200,000 dividend to XYZ For tax purposes, HC reports the actual dividend receved as Income, not the pro rata share of HC's eamings. 2 Of the $20,000 Interest Income, $5.000 was from a City of Seattle bond, $7,000 was from a Tacoma City bond, $6.000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market account. 3. This gain is from equipment that XYZ purchased In February and sold in December (Le., it does not qualify as §1231 gain). 4. This Includes total officer compensation of $2,500,000 (no one officer recelved more than $1,000,000 compensation). 5. This amount is the portion of incentive stock option compensation that was expensed during the year (recipients are officers). 6. XYZ actually wrote off $27,000 of its accounts receivable as uncollectible. 7. Tax depreciation was $1,900,000. 8. In the current year, XYZ did not make any actual payments on warranties It provided to customers. 9. XYZ made $500,000 of cash contributions to qualified charities during the year. The donations are qualified charitable contributions for purposes of determining the charitable contribution Itmitation. 10. On July 1 of this year XYZ acquired the assets of another bustness. In the process, It acquired $300,000 of goodwill. At the end of the year, XYZ wrote off $30.000 of the goodwill as Impatred. 11. XYZ expensed all of its organizational expenditures for book purposes. XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes. 12. The other expenses do not contain any Items with book-tax differences. 13. This Is an estimated tax provision (federal tax expense) for the year. Assume that XYZ is not subject to state income taxes. Estimated tax information: XYZ made four equal estimated tax payments totaling $360,000 ($90,000 per quarter). For purposes of estimated tax llabilities, assume XYZ was in existence in 2020 and that in 2020 It reported a tax liability of $500,000. During 2021, XYZ determined Its taxable income at the end of each of the four quarters as follows: Cumulative taxable Ancome (loss) $ 400, e00 $ 1,100, eee $1,400, eee Quarter-end First First Second Third​

Answer 1

Answer:

tough to read sorry dear

Answer 2

Answer:

can you pls send it in a short way pls

then I will solve it