Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Discover reliable solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

In the current year, Tanager Corporation (a calendar year C corporation) had operating income of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,000 and a short-term capital loss of $40,000. a. Compute Tanager's taxable income and tax for the year.

Sagot :

Answer: See explanation

Explanation:

Tanager's taxable income would be calculated as:

= Operating income - Operating expense + Long term gain + Short term loss

= $480,000 - $390,000 + $55,000 - $40,000

= $105,000

Tanager's tax for the year will be:

= $105,000 × 21%

= $105,000 × 0.21

= $22,050

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.