4 ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMTpays a $80,000 dividend to ABC and DEM pays a $40,000 dividend to ABC in the currentyear. Assuming that ABC has $1,000,000 of taxable income, calculate ABC's dividendsreceived deduction for the current year.$120,000$96,000$104,000$140,000None of these choices are correct.

It is the tax deduction on dividends received by a corporation from other corporations in which the…

Answered: ABC Company owns 40 percent of JMT…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 7DQ

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During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?Swallow's taxable income after deducting the dividends received deduction is $. b. Assume instead that Swallow Corporation owns 26% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?Swallow's NOL after deducting the dividends received deduction is $.
The Dawg corporation owns 16% of Company A and 25% of Company B. Dividends received from Company A were $142,000 and from Company B were $237,000. If Dawg's "adjusted" taxable income is $2,000,000, calculate Dawg's taxable income after including the dividend information. A В C D E 1 2 Taxable Income = 3 4 6 7 8 10
on January 1, 20x1 entitiy A acquires 30% interest in Entity B for 600,000. Entity B reports profit of 200,000 and declares dividends of 50,000 in 20x1. How much is the carrying amount of the investment in associate on Dec31, 20x1
Required information [The following information applies to the questions displayed below.] Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible DRD in each of the following situations: b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). Deductible DRD
During the current year, Swallow Corporation, a calendar year C corpora- tion, has the following transactions: Income from operations $660,000Expenses from operations 760,000Dividends received from Brown Corporation 240,000 Swallow Corporation owns 12% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year? Assume instead that Swallow Corporation owns 26% of Brown Corporation’s stock. How much is Swallow’s taxable income or NOL for the year?
On January 1, 2019, X Company purchased a 30% interest in Y Company for $250,000. Y reported net income of $100,000 for 2019 and declared and paid a dividend of $10,000. X using the Cost method. In its December 31, 2019, balance sheet what amount should X report as its investment in Y? Select one: a. 277,000 b. 340,000 c. 250,000 d. 223,000
Its not 10,000 www. Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible dividends-received deduction (DRD) in each of the following situations: Required: a. WC's taxable income (loss) without the dividend income or the DRD is $10,000. b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). c. WC's taxable income (loss) without the dividend income or the DRD is $(99,000). d. WC's taxable income (loss) without the dividend income or the DRD is $(101,000). e. WC's taxable income (loss) without the dividend income or the DRD is $(500,000). f. What is WC's book-tax difference associated with its DRD in part (a)? Is the difference favorable or unfavorable? Is it permanent or temporary? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Required F WC's taxable…
.Platek Enterprises purchases 100 percent of Smith Company for P600,000. At that date Smith Company had the following book value and market values:Accounts Book value Market valueCash and receivables P25,000 P25,000Inventory 125,000 180,000Plant assets (net) 300,000 475,000Current liabilities (60,000) (60,000)Long-term debt (120,000) (120,000)Common stock (15,000)Retained earnings (255,000)What is the total purchase differential (excess of cost over book value)? P150,000 P100,000 P420,000 P330,000
Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ôn that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the excess of Jareď's cost over its proportionate share of Shaun's book value was assigned to goodwill. REQUIRED: 5. How much is the net investment income each year? 6. On December 31, 20x2, what is the investment in Shaun Company balance (equity method) in Jared's financial records?
Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ón that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the excess of Jared's cost over its proportionate share of Shaun's book value was assigned to goodwill. REQUIRED: 5. How much is the net investment income each year? 6. On December 31, 20x2, what is the investment in Shaun Company balance (equity method) in Jared's financial records? Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of P100,000. The company holds net assets of P2,400,000 on January 1, 20x1. Ón that date, Jared Company purchases 40% of the outstanding stock for P1,200,000, which gives it the ability to have joint control with Glassman Company over Shaun. At the purchase date, the…
Ryan Ltd holds a 75% interest in Tully Ltd. On 30 June 2021 Tully Ltd transferred a depreciable non-current asset to Ryan Ltd at a profit of $15 000. Ryan Ltd determined that the remaining useful life of the asset at the date of transfer to Ryan Ltd was 5 years and the tax rate is 30%. The impact of the above transaction on the NCI share of profit at 30 June 2021 is: a. a decrease of $2 625 b. an increase of $3 750 c. an increase of $2 100 d. a decrease of $3 225 e. None of the above Please dont provide answer in image format thannk you

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ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMT pays a $80,000 dividend to ABC and DEM pays a $40,000 dividend to ABC in the current year. Assuming that ABC has $1,000,000 of taxable income, calculate ABC's dividends received deduction for the current year.