Question: This week's homework requires you to review a list of facts provided regarding a corporation's items of income and deduction.
The homework will cover the following COs.
• CO C: Understand and apply concepts and principles that measure taxable income derived from business activities, including choice of entity, methods of accounting for business income, issues of timing, and net operating losses.
• CO F: To measure income derived from business activities, identify the basic forms of conducting business, and distinguish and explain the tax implications for income earned and losses incurred by a sole proprietor, partnership, and corporation.
You will be asked to respond to four questions that require calculations. These questions are designed to help you further explore the week's content.
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 2017 of $2,300,000.
- GGPs cost of goods sold for the 2017 sales was $952,000.
- GGP incurred a long-term capital loss in the amount of $48,000.
- GGP had a capital loss carryover from 2016 of $15,000.
- GGP made cash charitable contributions totaling $135,000.
- GGP made contributions to Ronald Stump'spresidential campaign in the amount of $50,000.
Required: 1. What is GGP's taxable income for 2017? Show your work.
2. Does GGP's have anNOL carryforward to 2018? If so, how much?
3. Does GGP's have a capital-loss carryforward to 2018? If so, how much?
4. Does GGP's charitable contribution carryover to 2018? If so, how much? How long can it be carried over?