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    Computing Corporate Income Tax

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    During the current tax year, Frank Corporation generated gross income of $1,900,000 and had ordinary and necessary deductions of $1,400,000. What is the amount of Frank's corporate income tax for the year?

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    Solution Preview

    Frank's Corporation's income tax liability was $170,000 based on the following computations:

    Gross income $1,900,000
    Ordinary and necessary deductions ( 1,400,000)
    Taxable income ...

    Solution Summary

    This solution illustrates how to compute a C corporation's income tax.