Problem
During the current year, Kingbird Corporation (a calendar year C corporation) had the following income and expenses:
Income from operations: $300,000
Expenses from operations: $175,000
Dividends received from another corporation (Kingbird owns 20% of the other corp's stock): $25,000
Charitable contributions paid in cash: $20,000
Answer the following:
a) What is Kingbird Corporation's taxable income for the year before the charitable contribution deduction and the dividends received deduction?
b) What is Kingbird Corporation's charitable contribution deduction?
c) What is Kindbird Corporation's dividends received deduction?
d) What is Kingbird Corporation's taxable income after the charitable contribution deduction and dividends received deduction?