Question - A Corporation's operations for the year:
Operating income $500,000
Capital gain 100,000
Capital loss (250,000)
Dividend income (< 20% owned) 50,000
Tax-free municipal bond interest income 50,000
In addition it had made charitable contributions in the preceding year that could not be deducted due to the 10% of TI limit in the amount of $15,000, which were carried over to the current taxable year for deduction, if allowed.
How much taxable income does report on its form 1120, Corporate Income Tax Return?