Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percentof the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases:InventoryBuildingLandTotalFMV$ 10,00050,000100,000$ 160,000Adjusted TaxBasis$ 4,00030,00050,000$ 84,000The fair market value of the corporation's stock received in the exchange equaled the fair market value of the assets transferred to thecorporation by Ramon.Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.Required:a. What amount of gainloss does Ramon realize on the transfer of the property to his corporation?b. What amount of gain or loss does Ramon recognize on the transfer of the property to his corporation?c. What is Ramon's basis in the stock received in the new corporation?Required AComplete this question by entering your answers in the tabs below.Answer is complete but not entirely correct.Required B Required C

Realizing and recognizing gains or losses are two different things: realizing is when a gain or loss…

Answered: FMV $ 10,000 50,000 100,000 $ 160,000…

FMV $ 10,000 50,000 100,000 $ 160,000 Adjusted Tax Basis $ 4,000 30,000 50,000 $ 84,000 lue of the corporation's stock received in the exchange equaled the fa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A4
The following are the balance sheets of Ukraine Limited, Poland Limited and Russia Limited, as at the 31 December 2019. The three companies are major players in the automotive industry. Max Limited acquired 75% of the shares in Poland Limited on January 1 2017 when the reserve balances were as follows: General reserves: $24,000 and retained earnings $60 000. The acquisition of Poland Limited consisted of a deferred cash payment of $300,000 and a share exchange of 2 shares in Ukraine Limited for every 5 shares acquired in Poland Limited. The market price for a Ukraine Limited share at that date was $4.50. The transaction has not been recorded on the books. On 1 July 2019 Ukraine Limited acquired 30,000 shares in Russia Limited for cash at a price of $2.70 per share. For the year ended 31 December 2019 Russia Limited reported a profit of $64,000 (assume profit accrued evenly during the year). This transaction was recorded on the books. Balance Sheet as at 31 December 2019 Ukraine Ltd…
F5 Corporation, a domestic corporation had the following data during the calendar year 2020 Gross Income, Philippines P10,000,000 4,000,000 Allowable itemized deductions/expenses Dividend income FROM: a) Domestic corporation 1,000,000 b) Foreign corporation, 80% of its gross income were derived from the Philippines 1,000,000 c) Foreign corporation, 60% of its gross income were derived from the Philippines 800,000 d) Foreign corporation, 25% of its gross income were derived from the Philippines 400,000 49. The taxable income is a. P9,200,000 c. P8,200,000 b. P7,500,000 d. P7,430,000
Problem 6Ellen, the following passive income at the end of the taxable year 2020: Within the Phil. Without the Phil.1. Dividend income P20,000 P30,0002. Interest income 15,000 25,0003. Royalty income 50,000 80,0004. Lotto winnings 10,000 100,0005. Capital gain: sale of shares stocks (unlisted) 150,000 REQUIRED: Compute the total Income tax due on passive income of the taxpayer:1. Assuming, Ellen is resident citizen __________________ 2. Assuming, Ellen is non-resident alien engaged in trade and business _________________ 3. Assuming, Ellen is non-resident alien not engaged in trade and business_________________
Problem 20. A Domestic Corporation subject to 25% RCIT had the following data on its Philippine and foreign operations in 2021: Taxable Income in the Philippines P1,800,000 1,500,000 Taxable Income from Taiwan Taxable Income from Japan 1,200,000 Net Loss from South Korea (500,000) 300,000 200,000 Quarterly Income tax paid in the Philippines Income tax paid in Taiwan Income tax paid in Japan Income tax paid in South Korea 400,000 What is the income tax still due after foreign tax credits?
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The following data are provided: December 31 2021 2020 Cash $ 1300000 $ 1005000 Accounts receivable (net) 1500000 1150000 Inventories 2600000 2100000 Plant assets (net) 6000000 6600000 Accounts payable 1150000 820000 Income taxes payable 220000 90000 Bonds payable 1400000 1400000 10% Preferred stock, $50 par 1800000 1800000 Common stock, $10 par 2300000 1700000 Paid-in capital in excess of par 1650000 1400000 Retained earnings 4100000 3400000 Net credit sales 12800000 Cost of goods sold 8500000 Operating expenses 2900000 Net income 1600000 Additional information:Depreciation included in cost of goods sold and operating expenses is $1200000. On May 1, 2021, 60000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2021.At December 31, 2021,…
UNILEVER CARIBBEAN LIMITED Statement of Financial Position December 31, 2022 (Expressed in Trinidad and Tobago Dollars) Notes 2022 2021 $'000 $'000 ASSETS Non-current assets Property, plant and equipment 8 4,285 8,943 Retirement benefit asset 9(i) 99,142 137,039 Deferred tax asset 10 14,250 6,459 117,677 152,441 Current assets Inventories 11 29,250 26,808 Taxation recoverable…
CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash P500,000 P500,000 Accounts Payable P450,000 P440,000 Accounts Receivable 250,000 240,000 Mortgage Payable 200,000 220,000 Inventory 155,000 200,000 Ordinary Shares 595,000 - Fixed Assets (Net) 600,000 520,000 Retained Earnings 260,000 - SYANO COMPANY Book Value Fair Value Book Value Fair Value Cash P300,000 P300,000 Accounts Payable P350,000 P340,000 Accounts Receivable 150,000 160,000 Mortgage Payable 200,000 220,000 Inventory 125,000 100,000 Ordinary Shares 250,000 - Fixed Assets (Net) 400,000 420,000 Retained Earnings 175,000 - If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct,…
BOM21 B BACD002 BOM1 10:30AM 12:00NN TUESDAY & FRIDAY EA#9 Tax on Corporation: Problem Solving FnB Question 24 of 43 Fill in the blanks The books of a corporation show the following for the taxable year 2019 Gross income Deductions Philippines P400,000 P200,000 United States of America 300,000 100,000 Singapore 200,000 150,000 Malaysia 100,000 50,000 The corporation paid tax on net income of P70,000 in the US, P19,000 in Singapore and P15,000 in Malaysia The tax still due assuming that the corporation is Domestic Corporation is NOTE: Answers are in numerical form COMMA, PESO SIGN, and other characters are NOT REQUIRED < Previous 4 Shot on OnePlus Powered by Triple Camera O (foreign income taxes are claimed as tax credit) W 1741 327c
ver But not over Tax is: Of amount over: $0 $50,000 15% $0 $50,000 $75,000 $7,500 + 25% $50,000 $75,000 $ 100,000 $13,750 + 34% $75,000 $100,000 $335,000 $22,250 + 39% $100,000 $335,000 $10,000,000 $ 113,900+ 34% $335,000 $10,000,000 $15,000,000 $3,400,000 + 35% $10,000,000 $15,000,000 $18, 333, 333 $ 5,150,000 + 38% $15,000,000 $18,333,333 35% $0 Refer to the table above: A firm has $12, 000, 000 in taxable income. What is the firm's average tax rate?
29-A company’s earnings available to equity shareholders are OMR 160,000 and it has it has 5% Bonds of OMR 200,000. What is the amount of net operating income under the Net Income Approach? Assume corporate tax rate is 50%. a. OMR 155,000 b. OMR 165,000 c. OMR 170,000 d. OMR 150,000