In Week 4, we learned to apply concepts and principles to measure taxable income derived from a business activity. We have identified the C corporation as a basic legal form of conducting business. Apply what you have learned in this course through Week 5 to review the facts provided below and address the four questions that follow. Where a calculation is required, please show your work for full credit (partial credit may also be awarded).
Facts:
Greco Glass Products ("GGP") is a C Corporation.
GGP had gross revenue from sales in 2016 of $2,300,000.
GGPs cost of goods sold for the 2016 sales was $952,000.
GGP incurred a long-term capital loss in the amount of $48,000.
GGP had a capital loss carryover from 2015 of $15,000.
GGP made cash charitable contributions totaling $135,000.
GGP made contributions to Ronald Stump's presidential campaign in the amount of $50,000.
Required:
What is GGP's taxable income for 2016? Show your work.
Does GGP's have an NOL carryforward to 2017? If so, how much?
Does GGP's have a capital-loss carryforward to 2017? If so, how much?
Does GGP's charitable contribution carry over to 2017? If so, how much? How long can it be carried over?