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 1, 2021, was $60,000. For 2021, JD. was allocated $19,000 of ordinary income from Clampett, Incorporated, and no separately stated items. What is JDs basis in his Clampett, Incorporated, stock after all transections in 20217 Mutiple Choice $41.000 $22.000 S1.000

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.

Cougar, Inc., is a calendar year S corporation. Cougar’s Form 1120S shows nonseparately stated ordinary income of $80,000 for the year. Johnny owns 40% of the Cougar stock throughout the year. The following information is obtained from the corporate records. Tax-exempt interest income $ 3,000    Salary paid to Johnny (52,000)    Charitable contributions (6,000)    Dividends received from a non-U.S. corporation 5,000    Short-term capital loss (6,000)    Depreciation recapture income 11,000    Refund of prior state income taxes 5,000    Cost of goods sold (72,000)    Long-term capital loss (7,000)    Administrative expenses (18,000)    Long-term capital gain 14,000    Selling expenses (11,000)    Johnny’s beginning stock basis $ 32,000    Johnny’s additional stock purchases 9,000    Beginning AAA 31,000    Johnny’s loan to corporation 20,000    a. Compute Cougar’s book income or loss. b.…

Silver, Incorporated was incorporated in 2019 and adopted a calendar year for tax purposes. Here is a schedule of Silver's taxable income for 2019 and 2020. 2019 2020 Ordinary income $100,000 $150,000 Net capital gain 0 5,000 Taxable income $100,000 $155,000 In 2021, Silver generated $300,000 ordinary income and recognized a $15,000 net capital loss. Assuming a 21% corporate tax rate, which of the following statements is CORRECT? Silver can deduct its $15,000 net capital loss only on a carryforward basis. Silver can carry the $15,000 net capital loss back to 2020 and receive a $3,150 refund. Silver can deduct $3,000 of the $15,000 capital loss against its 2021 ordinary income and receive a $630 tax savings. Silver can carry $5,000 of the $15,000 net capital loss back to 2020 and receive a $1,050 refund.

Sariah's Home Entertainment LLC ("SHE LLC") is a company that sells in-home entertainment systems. In 2021, SHE had provided you, its CPA, with the following information about its 2021 activities: ▪ Gross profit from sales of home entertainment systems $475,000 (no book-tax differences). ▪ Dividends SHE received from a 21 percent-owned corporation of $137,000. SHE uses the equity method of accounting this minority-owned subsidiary and this also represents its pro rata share of the corporation's earnings. ▪ Expenses other than the dividend received deduction (DRD), charitable contribution (CC) and net operating loss (NOL), are $339,000. ▪ SHE's tax depreciation exceeded book depreciation by $18,500 ▪ NOL carryover from prior year of $17,000. ▪ SHE's book federal income tax expense is $57,000. 1. What is SHE's book net income? 2. What is SHE's modified DRD taxable income? 3. What is SHE'S DRD? 4. What is SHE's taxable income after the NOL carryover and the DRD? 5. What is SHE's taxable…

ABC was formed as a calendar-year S corporation with Alan, Brenda, and Conner as equal shareholders. On May 1, 2020, ABC's S election was terminated after Conner sold his ABC shares (one-third of all shares) to his solely owned C corporation, Conner, Incorporated ABC reported business income for 2020 as follows: (Assume that there are 365 days in the year.) Period Income January 1 through April 30 (120 days) $ 203,285 May 1 through December 31 (245 days) 533,285 January 1 through December 31 $ 736,570 If ABC uses the daily method of allocating income between the S corporation short tax year (January 1–April 30) and the C corporation short tax year (May 1–December 31), how much income will it report on its S corporation short tax year return and its C corporation short tax year return for 2020? Essay Toolbar navigation opens in a dialog

On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31.   Jul.   1   Sell $18,500 of common stock to Suzie. Jul.   1   Sell $18,500 of common stock to Tony. Jul.   1   Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul.   2   Pay legal fees of $1,900 associated with incorporation. Jul.   4   Purchase office supplies of $1,700 on account. Jul.   7   Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul.   8   Purchase 10 mountain bikes, paying $19,500 cash.…

You’re a 40% shareholder of ABC, Inc., an S corporation. ABC’s ordinary busi-ness income for 2019 was exactly $100,000. ABC distributed $20,000 to you in your capacity as a shareholder during 2019. On your 2019 Form 1040, you will report ___ of gross income from ABC. Why is that the correct amount     plzzz ans asap.....

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 21

Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $20,000 cash, equipment (FMV $40,000; adjusted tax basis $41,500), and business inventory ($20,000 FMV; adjusted tax basis $12,000), and Ms. Tuck drafts the legal documents and designs the accounting system for B, valued at $20,000. BT issues 1,000 shares of common stock to its two shareholders. a) Determine BT Inc.’s book and tax basis in the inventory transferred by Mr. Boyd and the equipment transferred by Ms. Tuck b) and the book and tax basis of the services (before they are expensed/amortized as organization and startup costs) performed by Ms. Tuck.