Calculate Green's accumulated taxable income.
Green Corporation, a closely held operating corporation, reports the following:
Taxable income $200,000
Long-term capital gain 30,000
Dividends-received deduction 20,000
Federal income taxes on long-term capital gain 11,700
Accumulated earnings credit 80,000
Federal income taxes 65,150
Taxable income $200,000
Plus: dividends-received deduction 20,000
Minus: LTCG (net of taxes)* ( 23,700)
Minus: accumulated earnings credit ( 80,000)
Minus: federal income taxes ( 42,000)
Accumulated taxable income $ 74,300
*$30,000 * .21% = $16,300 $30,000 - $6,300 = $23,700
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