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17 October, 23:32

LNS Corporation reports revenues of $2,100,000. Included in the $2,100,000 is $27,250 of tax-exempt interest income. LNS reports $1,507,500 in ordinary and necessary business expenses. What is LNS corporation's taxable income for the year?

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  1. 18 October, 00:00
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    Net taxable income = $565,250

    Explanation:

    Given:

    Revenue during the year = $2,100,000

    Tax-exempt income = $27,250

    Expenses during the year = $1,507,500

    Computation of Gross taxable income:

    It is given that revenue of $2,100,000 include tax exempt income of $27,250.

    So,

    Gross taxable income = Revenue during the year - Tax-exempt income

    Gross taxable income = $2,100,000 - $27,250

    Gross taxable income = $2,072,750

    Computation of Net taxable income:

    Net taxable income = Gross taxable income - Expenses during the year

    Net taxable income = $2,072,750 - $1,507,500

    Net taxable income = $565,250
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Home » Business » LNS Corporation reports revenues of $2,100,000. Included in the $2,100,000 is $27,250 of tax-exempt interest income. LNS reports $1,507,500 in ordinary and necessary business expenses. What is LNS corporation's taxable income for the year?
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