question archive The Garvey Corporation, a C corporation, during its first 5 years of operation, reported thefollowing taxable incomes (losses):•Year12345 $6000020000(90000)3000040000 For purposes of this Assignment, you are to use the corporate tax rates as presented in Chapter 1 for all years

The Garvey Corporation, a C corporation, during its first 5 years of operation, reported thefollowing taxable incomes (losses):•Year12345 $6000020000(90000)3000040000 For purposes of this Assignment, you are to use the corporate tax rates as presented in Chapter 1 for all years

Subject:AccountingPrice: Bought3

The Garvey Corporation, a C corporation, during its first 5 years of operation, reported thefollowing taxable incomes (losses):•Year12345 $6000020000(90000)3000040000 For purposes of this Assignment, you are to use the corporate tax rates as presented in Chapter 1 for all years. Required:a) Explain the net operating loss provisions of the tax code as they would relate to the Garvey Corporation.b) Determine the tax liability for the Garvey Corporation for years 1 and 2 (using the tax rates given above).c) Determine the income tax refund that Garvey Corporation would realize in year 3, assuming the corporation elected to usethe carryback provision for its net operating loss.d) Determine the required income tax payments for year 4.e) Determine the income tax liability (refund) realized in year 5.f) If the Garvey Corporation believes its business is about to “take off” and that future incomes will exceed all previouslevels, resulting in higher tax rates, would you advise Garvey Corporation to forgo the carryback provision for its year 5 netoperating loss? Why, or why not? Writing Rubric: 20 points Points possible Assignment CriteriaContent and Focus Includes all of the introductoryelements and all of the main sections and requirements ofthe problems. Points earned by student0–8 Important Note: Reponses to all assignments should be the original work of the student. Solutions must adhere toKaplan University’s academic integrity requirements. Analysis and Critical Thinking Provides an excellent in-depth analysis that demonstrates a complete understandingof tax concepts; all related tax concepts are correctly applied.Writing Style, Grammar, APA Written responses mustadhere to the following formatting guidelines: Microsoft®Word® document, 12-point Times New Roman or Arialfont, single spacing, and 1-inch margins.Total for Writing Assignment 0–4 Assignment Criteria Points possible Points earned by student Content and Focus Includes all of the computationalelements and 91–100% of the question requirements.Analysis and Critical Thinking Provides an excellent indepth analysis that demonstrates a completeunderstanding of tax concepts; all related tax conceptsare correctly applied. 0–12 Organization and Presentation Demonstrates excellentcollege-level organization and style for cost accountingreports; presents work in Excel® or Microsoft Word,showing all necessary formulas and steps. Submitquantitative problems and exercises using either oneMicrosoft Word document or one Excel file (book) foreach unit. If using an Excel file, use one tab for eachproblem or exercise and name the tab to reflect theexercise or problem number (e.g., Ch1Problem36).Total for Writing Assignment 0–6 0–12 Corporate Tax RatesNot over $50000 15% of taxable income Over $50,000 but not over 75,000 $7500+25% of the excess over 50000 Over 75000 but not over 100,000 13750+34% of the excess over 75000 Over 100,000 but not over 335,000 22250+39% of the excess over 100,000 Over 335,000 but not over 10,000,000 113900+34% of the excess over 10,000,000 Over 10,000,000 but not over 15,000,000 3,400,000+35% of the excess over 10,000,000 Over 15,000,000 but not over 18,333,333 5,150,000+38% of the excess over 15,000,000 Over 18,333,333 6,416,667+35% of the excess over 18,333,333

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