Business Finance Homework Help

8. During the current year, Brown Corp. reported the following:
Book income of $150.000
Included in the calculation of book income, Brown Corp considered all of the following, and included those items that should be properly included in that calculation.
Tax exempt interest of $500 from public activity bonds issued prior to 2009
Tax exempt interest of s700 from private activity bonds issued in 2009
70 percent dividends received deduction on $500 of dividends received from ABC Corp.
80 percent dividends received deduction on $400 of dividends received from 123 Corp.
(There were no limitations related to DRDMTI that required any funky DRD calculations)
Equity method income of $1100 from 123 Corp. was included in book income. Brown owns 40% of 123 Corp
Bad debt expense of $900(no write offs in the current year)
Gain of $1,000 under the installment method from the sale of an asset that occurred two years ago. The entire gain from the sale was reported in book income in the year of the sale
Income tax expense of $45,000
Complete Schedule MI below. If the difference is reported on page one of the 1120, do not include on Schedule
M1