17.At the beginning of the year, Tote, Inc., had $75,000 in its AAA and $90,000 of earnings and profits from prior C corporation years. During the year, Tote, Inc., earned $75,000 of ordinary income and paid $174,000 in distributions to its shareholders. Assume that Jeromy owns 30 percent of Tote, Inc., his basis in Tote, Inc., at the beginning of the year is $10,000. How much, if any, of the distribution is taxable as a dividend to Jeromy? Explain the rule and show computation

Prime, Inc., owns 100% of Steak Corporation. For the current year, Prime reports net income from own operations (without consideration of its investment in Steak and Steak's income) of $217,000 and Steak reports $93,250. Prime had a bond payable outstanding on January 1, with a carrying amount of $267,700. Steak acquired the bond on that date for $246,000. During the current year, Prime reported interest expense of $15,190 while Steak reported interest income of $12,190, both related to the intra-entity bond payable. What is consolidated net income

3.

During its first year of operation, K Corporation had a gross profit from operations of $180,000 anddeductions of $250,000 before considering its dividend income or dividends-received deduction. K receiveddividends of $50,000 from a taxable domestic corporation in which K owned 4.5 percent of the stock.Assuming its ownership of the dividend-paying corporation’s stock is not debt financed, what is KCorporation’s net operating loss for the year?

Deli Corporation (an S Corporation) is owned 100% by individual A. Deli earns business income of $40,000 in year one and distributes $30,000 to A in December of year one. What is A’s basis in the X stock at December 31 assuming A’s initial basis was $10,000?

Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $365,000. Amortization of excess fair value associated with the 30% ownership is $12,600 per year. In 2021, Lindman earns an income of $132,000 and declares cash dividends of $33,000. Previously, in 2020, Lindman had sold inventory costing $33,600 to Matthew for $56,000. Matthew consumed all but 20 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $44,800 to Matthew for $80,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? b. What is the equity method balance in the Investment in Lindman account at the end of 2021? a. b. Equity…

Brittney owns 30% of Orange Company, a C-Corporation. Orange Company has $600,000 in operating income during the year. Orange Company also makes a $10,000 cash dividend distribution to Brittney. How much income should Brittney include in gross income this year from Orange Company? Group of answer choices $10,000. $180,000. $190,000. $610,000.

D.7.

Hawkeye Company reports current E&P of $300,000 this year and accumulated E&P at the beginning of the year of $200,000. Hawkeye distributed $400,000 to its sole shareholder, Ray Kinsella, on December 31 of this year. Ray's tax basis in his Hawkeye stock before the distribution is $75,000. b. What is Ray's tax basis in his Hawkeye stock after the distribution? Tax basis

Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an 5 Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and 3111 teployee wages Depreciation expense Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income Year 1 $ 175,000 (60,000) (40,000) (15,000) (10,000) (7,500) 2,000 500 $ 45,000 Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 134,500 4 Problem 11-50 Part a (Static) e. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years.