Pepper Inc., an S Corporation that has “C” years E&P, has gross receipts of $780,000 ($400,000 from operating income and taxable interest of $380,000), operating income expenses of $250,000 and deductions attributable to the interest income of $140,000 during the current year. Calculate any §1375 penalty tax that this corporation must pay.

Pepper Inc., an S Corporation that has “C” years E&P, has gross receipts of $780,000 ($400,000 from operating income and taxable interest of $380,000), operating income expenses of $250,000 and deductions attributable to the interest income of $140,000 during the current year. Calculate any §1375 penalty tax that this corporation must pay.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 15DQ

See similar textbooks

Similar questions

Grevilla Corporation is a manufacturing company. The corporation has accumulated earnings of $950,000, and it can establish reasonable needs for $400,000 of that amount. Calculate the amount of the accumulated earnings tax (if any) that Grevilla Corporation is subject to for this year. $_____________
Caloundra Corporation has book income of $ 40,000. Included in the book income is $3,000 of tax-exempt interest, $7,000 of book income tax expense, and a $2,000 nondeductible fine. Also included in book income are $10,000 of dividends. Caloundra received from a 30 percent owned corporation. Using this information and Form 1120 provide the amounts that go on each line on the form. Form 1120, Schedule M-1 Line 1 $__________________ Form 1120, Schedule M-1, Line 10 $__________________ Form 1120, Page 1, Line 28 $__________________ Form 1120, Schedule C, Line 2(a) $ and 2(c) $__________________ Form 1120, Schedule C, Line 24 $__________________ Form 1120, Page 1, Line 29b $__________________ Form 1120, Page 1 , Line 30 $__________________
Quince Corporation has taxable income of $485,000 for its calendar tax year. Calculate the corporation's income tax liability for 2019 before tax credits. $________________
Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation's tax liability for 2019? $7,500 $5,250 $10,500 $13,650 None of the above
In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.