Clampett, Inc., has been an S corporation since its inception. On July 15, 2020, Clampett, Inc., distributed $50,000 to J.D. His basis in his Clampett, Inc., stock on January 1, 2020, was $30,000. For 2020, J.D. was allocated $10,000 of ordinary income from Clampett, Inc., and no separately stated items. What is the amount of income J.D. recognizes related to Clampett, Inc., in 2020?
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- Quince Corporation has taxable income of $485,000 for its calendar tax year. Calculate the corporation's income tax liability for 2019 before tax credits. $________________Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($37,000), inventory (FMV $57,000, basis $24,000), accounts receivable (FMV $37,000, basis $37,000), and equipment (FMV $57,000, basis $77,000). In 2021, Clampett, Incorporated, sells its entire inventory for $57,000 (basis $24,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2021 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2021? Multiple Choice O O $9,870 $13,000 $2,730 $0 None of the choices are correct.Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett, Incorporated, distributed $60,000 to JD. His basis in his Clampett, Incorporated, stock on January t, 2021, was $60,000. For 2021, JD. was allocated $19,000 of ordinary income from Clampett, Incorporated, and no separately stated items. What is JD's basis in his Clampett, Incorporated, stock after all transactions in 20217 Multipie Choice $41.000 $22.000 $3.000 S.000 None of the choices are comect
- Timpanogos Inc. is an accrual-method, calendar-year corporation. For 2020, it reported financial statement income after taxes of $1,342,000. Timpanogos provided the following information relating to its 2020 activities: Life insurance proceeds as a result of CEO’s death $200,000 Revenue from sales (for both book and tax purposes) $2,000,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. $21,000 Charitable contributions $180,000 Cost of goods sold for book and tax purposes $300,000 Interest income on tax-exempt bonds $40,000 Interest paid on loan obtained to purchase tax-exempt bonds $45,000 Rental income payments received and earned in 2020 $15,000 Rental income payments received in 2019 but earned in 2020 $10,000 Rental income payments received in 2019 but not earned by year-end $30,000 Tax Depreciation $55,000 Book Depreciation $25,000…Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,529,880. Timpanogos provided the following information relating to its 2021 activities: $ 228,000 2,280,000 23,940 205,200 Life insurance proceeds as a result of CrO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Qualified charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2021 Rental income payments received in 2020 but earned in 2021 Rental income payments received in 2021 but not earned by year-end Tax depreciation Book Depreciation Net capita1 loss Federal income tax expense for books in 2021 342,000 45,600 51,300 17,100 11,400 34,200 62,700 28,500 47,880 353,400 Required: a.…X-Rays was organized in January 2019 as a corporation in the jurisdiction of Puerto Rico. During 2020, the taxable (natural) year, it obtained the following results under the accumulation method (“accrual”) ended on December 31, 2020. Income Services $ 425,000 Dividends 28,000 Total $ 453,000 Expenses Administration 275,000 Food 12,000 Entertainment 10,000 Depreciation 10,000 Data: Dividend income comes from a domestic corporation in Puerto Rico where X-Rays owns 12% of the common stock. The corporation generated a net operating loss of $ 200,000 in 2019. The depreciation claimed under GAAP is equal to the depreciation granted for taxes. Determine the net taxable income (loss) of X-Rays as of December 31, 2020 in Puerto Rico.
- On January 1, 2023, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has twor shareholders, Erin and Frank, each of whom owns 500 shares of Kinney's stock. Kinney's nonseparately stated ordinary income for the year is $5,000. Kinney distributes $6,000 to each shareholder on July 1, and it distributes another $3,000 to each shareholder on December 21. How are the shareholders taxed on the distributions? Ignore the 20% QBI deduction. Round any division to five decimal places. If required, round final answers to the nearest dollar. Erin and Frank each report December 21 distribution. Assuming tax-free 1,000 dividend income for the July 1 distribution and s X each for the that the shareholders have sufficient basis in their stock, Erin and Frank each receive a X distribution from AAA.On January 1, 2023, Kinney, Inc., an S corporation, reports $33,600 of accumulated E & P and a balance of $84,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of Kinney's stock. Kinney's nonseparately stated ordinary income for the year is $42,000. Kinney distributes $50,400 to each shareholder on July 1, and it distributes another $25,200 to each shareholder on December 21. How are the shareholders taxed on the distributions? Ignore the 20% QBI deduction. Do not round intermediate computations. If required, round your final answers to the nearest dollar. Erin and Frank each report $ dividend income for the July 1 distribution and $ distribution. Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a tax-free distribution from AAA. $ each for the December 21Clampett, Inc. converted to an S corporation on January 1, 2021. At that time, Clampett, Inc. had cash ($40,000), inventory (FMV $60,000, Basis $30,000), accounts receivable (FMV $40,000, Basis $40,000), and equipment (FMV $60,000, Basis $80,000). In 2021, Clampett, Inc. sells its entire inventory for $60,000 (Basis $30,000). Assuming the corporate tax rate is 21% and that Clampett, Inc. had a $20,000 net operating loss carryover from its prior C corporation years. How much built-in gains tax does Clampett, Inc. pay in 2021? $2,100. $0. $10,500. $10,000. None of the choices are correct.
- In 2021, Unreliable Corporation (a C-corporation) had operating income of $1,000,000. It had a NLTCL of$(400,000). In addition, it received a $500,000 dividend from RealGood Corporation. Unreliable owns 22% of the stock of RealGood Corporation. Here is the history of the net long-term capital gains Unreliable had over the past 5 years: a Determine Unreliable Corporation’s taxable income for 2021.b. Determine Unreliable Corporation’s tax liability for 2021c. Assume that Unreliable Corporation is your client. Summarize the tax consequences they have as a result of the various income and gains they earned in 2021.Mr. Darlow, a supervisory employee, received the following income in 2021: Gross compensation income, before contributions to SSS, PhilHealth, and HDMF totaling P124,000 Fringe benefits Gain from redemption of shares in a mutual fund Commission income Gain on sale of stocks through the PSE P800,000 200,000 100,000 150,000 400,000 Determine the total income to be reported by Mr. Darlow in gross income.On January 1, 2020 EA Inc makes an S Corporation election. EA Inc has been operated as a C Corporation for several years and had E &P of $50,000 at January 1, 2020. Ellyn, the sole shareholder has a tax basis in her shares of EA Inc of $100,000 on January 1, 2020. During 2020, EA Inc has taxable income of $250,000. On December 31, 2020 EA Inc distributes $600,000 to Ellyn. What amount of dividend income and/ or capital gain will Ellyn recognize as a result of the cash distribution ? A. No dividend income or gain OB. Dividend income $50,000; capital gain $200,000 O C. Capital gain of $250,000 OD. $50,000 dividend income