CPA #1

Thx for your detail explaination. Got a concept question again. I was reading the becker's book, and i know ACE, and i know the Corp's E&P, but what exactly are their difference from each other? I mean are they two different things or they are somehow related? I think i am confused with the terms.....Hope this question is not too silly...

Thx

This one is wired...

During 2008, Nale Corp received dividends of $1,000 from 10% owned taxable domestic corporation. When Nale computes the maximum allowable deduction for contributions in 2008 returns, the amount of dividens to be included in the computation of taxable income is

The answer said $1,000

My question: For the dividend that should included in the taxable income should only be 30%, and the rest 70% is DRD. So the answer should be 300, why 1000?

Can anyone help me correct me on my understanding on NOL

When i am calculating the NOL in current year, I did not take the previous NOL carryfoward into account and also I do not include the charity contribution deduction. So i start with :

Gross income(include dividend income) - expense - dividend received deduction---------> Then i get a NOL?

Why are we calculating the NOL and under what kind of circumstance will we use the NOL in the calculation?

mcannon1104 wrote: Good answer, CPA#1.  Though I took REG last November, I did this one in my head.  Guess Phil drilled it in there!

Doctor Phil rocks, as always....