Problem 5-24 (Algorithmic) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $320,000. Blue's current E & Pis $192,000, and at the end of the year, it distributes $640,000 ($320,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is $44,800; Jon's stock basis is $179,200. How is the distribution treated for tax purposes? If an amount is zero, enter "0". Pooja has the following: Dividend income: Capital gain: Stock basis after distribution: Jon has the following: Dividend income: S Capital gain: s Stock basis after distribution: s

Problem 5-24 (Algorithmic) At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $320,000. Blue's current E & Pis $192,000, and at the end of the year, it distributes $640,000 ($320,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is $44,800; Jon's stock basis is $179,200. How is the distribution treated for tax purposes? If an amount is zero, enter "0". Pooja has the following: Dividend income: Capital gain: Stock basis after distribution: Jon has the following: Dividend income: S Capital gain: s Stock basis after distribution: s

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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am. 119.
WFO Corporation has gross receipts according to the following schedule: $ 25.00 million $ 27.00 million million $29.00 $ 29.50 million $ 30.00 million $31.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Multiple Choice O O Year 3 Year 4 Year 5 Year 6 None of the choices is correct.
b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $40,000. How much dividend income will Matt recognize this year? Dividend recognized Show Transcribed Text G o c. If Matt's basis in his Lone Star shares was $7,000 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Capital gain recognized on the sale and distribution
Company XYZ is a CCPC. This year has an opening non-eligible RDTOH of $20,000; cdn ABI income was $200,000; non- eligible, cdn dividend income (non-connected) was $10,000; cdn taxable capital gain income of $20,000; paid out dividend was $30,000. The small business deduction was $19,000. Part I tax was $40,000. There was an applied allowable net capita loss carry forward of $10,000. Taxable income was $270,000, assume all transactions and balances qualify for non-eligible status. Please calculate the company`s ending noneligible RDTOH BEFORE this year `s dividednd refund this year?
DA 41) Dozen Corporation is owned equally by twelve unrelated individuals. Its taxable income this year is $100,000 and its regular federal income tax liability is $21,000. The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders. The corporation had accumulated earnings and profits of $900,000 at the end of the preceding year. The company has not documented any business needs for the accumulated profits. The accumulated earnings tax is A) $14,800. 12) A corporation distr B) $19,800. C) $10,800. D) $19,000.
Question 5 of 43 Fill in the blanks: La Pagayo Corporation commenced business operations in calendar year 2001. It is subject to MCIT beginning 2005. Income taxes during the years from 2005 to 2012 are as folle Normal Corporate Minimum Corporate Year Excess of MCIT over NCIT Income Tax Income Tax P75,000 20,000 10 300,000 40,000 45,000 32,000 49.000 C 2005 P25,000 P100,000 2006 130,000 150,000 2007 200,000 190,000 2008 0 300,000 2009 10,000 50,000 2010 15,000 60.000 2011 8,000 40,000 2012 1,000 50,000 Income tax still due and payable for 2006 is NOTE Answers are merical form. COMMA, PESO SIGN and < Previous Type here to search Shot on OnePlus Powered by Triple Camera O B W 28°C Light
1. 1. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of 2021 was $210,000 ( including consideration for the dividends listed below) Marjorie Corporation also had the following information for 2021: Taxable income $350000: federal income tax $119,000 : dividends received ( less than 20% owned domestic corporation $ 100,000 : Cash dividends paid in 2021 $ 40,000: dividends paid January 31 2022 $ 20,000: Consent dividends $ 10,000: Excess charitable contribution $ 16,000. Net capital loss adjustment $ 8000. The Accumulated taxable income for purpose of the Accumulated Earnings Tax for Marjorie’s Corporation for the year of 2021 is 1.$97000 2 $90000 3 $110000 4 $100000 Answer is $97,000 please explain this how 2. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of…
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Subject: accounting
3 Net Income. A calendar year S corporation has the following information for the current taxable year: Sales $180,000 Cost of goods sold. Dividend income Net capital loss Salary to Z. Life insurance for Z (70,000) 5,000 (4,000) 12,000 500 Other operating expenses Cash distributions to owners 40,000 20,000 Assume Z is single and her only other income is $30,000 salary from an unrelated employer. She is a 20% owner with a $10,000 basis in the S stock at the beginning of the year. Calculate the S corporation's net ordinary income and Z's adjusted gross income and ending basis in the S corporation stock.
Hawkeye Corporation starts business on April 2, 2023. The corporation reports startup expenditures of $64,000 all incurred in the prior year. Determine the total amount that Hawkeye Corporation can elect to deduct in 2023. O a. $0 O b. $3,200 O c. $4,267 O d. $7,950
applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $104,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $12,480. Lone Star declared $31,200 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for $41,600. How much dividend income will Matt recognize this year? Answer is complete but not entirely correct. Dividend recognized $ 166,400 X