Noelle, the owner of all of the shares of ClockCo, an S corporation, transfers her stock to Grayson on April 1. ClockCo reports a $75,000 NOL for the entire tax year, but only $11, 250 of the loss occurs during January-March Assume 365 days in a year. Round per day computations to five decimal places. Round final answers to the nearest dollar. Without a short - year election, how much of the loss is allocated to Noelle and how much is allocated to Grayson? Noelle's loss allocation: $fill in the blank 1 (wrong answer 56,507) Grayson's loss allocation: Sfill in the blank 2 (wrong answer 18, 493) If the corporation makes the short-year election, how much of the loss is allocated to Grayson? Sfill in the blank 3 63,750 (correct answer)

Taylor Corporation is a calendar year taxpayer. Devon owns all of its stock. Her basis for the stock is $5,000. On April 1 of the current (non-leap) year Taylor distributes $54,000 to Devon. Read the requirement. a. Current earnings and profits (E&P) of $20,000; accumulated E&P of $18,000. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Complete all input fields. For zero amounts, enter a 0. Use parentheses or a minus sign for losses and E&P deficits.) Situation a. Distribution Dividend income Remaining distribution Return of capital Capital gain (loss) Carryforward accumulated E&P Requirement Determine the tax consequences of the cash distribution in each of the following independent situations: a. Current E&P of $20,000; accumulated E&P of $18,000. b. Current E&P of $26,000; accumulated E&P deficit of $(16,000). C. Current E&P deficit of $(70,000); accumulated E&P of $50,000. d. Current E&P deficit of $(16,000); accumulated…

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Gary receives $40,000 worth of Quantro, Inc., common stock from his late grandmother's estate. Early in the year, he receives a $100 cash dividend. Four months later, he received a 2% stock dividend. Near the end of the year, Gary sells the stock for $42,000. Due to these events only, how much must Gary include in his gross income for the year?

At the beginning of the tax year, Lizzie holds a $10,000 stock basis as the sole shareholder of Spike, Inc., an S corporation. During the year, Spike reports the following: Net taxable income from sales $25,000 Net short-term capital loss (18,000) Cash distribution to Lizzie, 12/31 40,000 If an amount is zero, enter "0". a.  Determine Lizzie's stock basis at the end of the year. $fill in the blank 1. b.  Of Lizzie's $40,000 cash distribution, $fill in the blank 2 is tax-free and $fill in the blank 3 is  . c.  $fill in the blank 5 of the short-term capital loss is suspended this year.

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Mike Barton owns Barton Products, In. The corporation has 30 employees. Barton Corporation expects $800,000 of net income before taxes in 2021. Mike is married and files a joint return with his wife, Elaine, who has no carnings of her own. Mike and Elaine have no other income, file a joint tax return, and claim the standard deduction. Mike's salary is $200,000 per year (already deducted in computing Barton Corporation's $800,000 net income).A. Identify and write down the given facts. Then, calculate the tax liability for Barton Corporation and for Mike and Elaine. B. Should Mike increase his salary from Barton by $50,000 to reduce the overall tax burden to himself and Barton Products? Because of the Social Security cap, the corporation and Mike each would incur a 1,45% payroll tax with the corporate portion being deductible.

Andrew, who is single, retired from his job this year. He received a salary of $26,000 for the portion of the year that he worked, tax-exempt interest of $2,600, and dividends from domestic corporations of $3,700. On October 1, he began receiving monthly pension payments of $700 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $11,000 and incurred $16,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Requirement Compute Andrew's adjusted gross income. Salary Dividend income 26,000 3,700 Rental income 11,000 Social security income (taxable portion) ? Pension income (taxable portion) Gross income Minus: Deductions for Adjusted gross income Rental income Adjusted gross income -16,000

Andrew​, who is​ single, retired from his job this year. He received a salary of $22,000 for the portion of the year that he​ worked, tax-exempt interest of $3,800​, and dividends from domestic corporations of $2,600. On September ​1, he began receiving monthly pension payments of $900 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $11,000 and incurred $16,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job.   Requirement Compute Andrew's adjusted gross income.                       Gross income   Minus: Deductions for Adjusted gross income         Adjusted gross income

Andrew​, who is​ single, retired from his job this year. He received a salary of $24,000 for the portion of the year that he​ worked, tax-exempt interest of $3,000​, and dividends from domestic corporations of $3,900. On August ​1, he began receiving monthly pension payments of $1,200 and Social Security payments of $500. Assume an exclusion ratio of 40% for the pension. Andrew owns a duplex that he rents to others. He received rent of $9,000 and incurred $11,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job.   Requirement Compute Andrew's adjusted gross income.   Salary   Dividend income   Pension income (taxable portion)   Rental income   Social security income (taxable portion)   Gross income   Minus: Deductions for Adjusted gross income     Rental expenses   Adjusted gross income