Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense.
a. Book income of $ 50,000 including capital gains of $ 2,000, a charitable contribution of $ 1,000, and travel and entertainment expenses of $ 3,000.
b. Book income of $ 92,000 including capital losses of $ 3,000, a charitable contribution of $ 12,000, and travel and entertainment expenses of $ 3,000.
c. Book income of $ 76,000 including municipal bond interest of $ 2,000, a charitable contribution of $ 5,000, and dividends of $ 3,000 from a 10% owned domestic corporation. The corporation also has an $ 8,000 charitable contribution carryover.
d. Book income of $ 129,000 including municipal bond interest of $ 2,000, a charitable contribution of $ 5,000, and dividends of $ 7,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $ 6,000 and a capital gain of $ 2,500 in the current year.