Course Project Address each of the following scenarios in your report . Tasks: During the current year, Carlson Corporation (a calendar year taxpayer) had the following income and expenses: Income...

Course Project

Address each of the following scenarios in your report.

Tasks:

1. During the current year, Carlson Corporation (a calendar year taxpayer) had the following income and expenses:
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   Income from operations	$350,000
   Expenses from operations	225,000
   Qualifying dividends from domestic corporation in which Carlson owns a 40% interest	27,000
   NOL carryover from prior year	2,000

   
   

   On October 1, Carlson Corporation made a contribution to a qualified charitable organization of $25,000 in cash (not included in any of the above items).Determine Carlson Corporation’s charitable contribution deduction for the current year.

   
   

2. ACME Corporation, an accrual basis taxpayer, was formed and began operations on October 1, 2016. The following expenses were incurred during the first tax year (October 1 to December 31, 2016) of operations:
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   Expenses of temporary directors and of organizational meetings	$15,0000
   Fee paid to the state of incorporation	8,500
   Accounting services incident to organization	13,500
   Legal services for drafting the corporate charter and bylaws	16,000
   Expenses incident to the printing and sale of stock certificates	5,000
   	$58,000

   
   

   Assume ACME Corporation makes an appropriate and timely election under § 248(c) and the related Regulations. What is the maximum organizational expense ACME may write off for tax year 2016?

   
   

3. The following information for 2016 relates to WeekEnders Corporation, a calendar year, accrual method taxpayer.
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   

   Net income per books (after-tax)	$174,100
   Federal income tax expense per books	86,600
   Tax-exempt interest income	4,500
   MACRS depreciation in excess of straight-line depreciation used for financial statement purposes	7,200
   Excess of capital loss over capital gains	9,400
   Nondeductible meals and entertainment	5,500
   Interest on loan to purchase tax-exempt bonds	1,100

   
   

   Based on the above information, use Schedule M—1 of Form 1120, which is available on the IRS website, to determine Weekly's taxable income for 2016.

   
   

Submission Guidelines:

• Submit your answers in a 2–3 page Microsoft Word document. Also, submit the completed Federal Tax Form 1040 where required.