! Required information Problem 16-55 (LO 16-2) (Static) [The following information applies to the questions displayed below.] Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible dividends-received deduction (DRD) in each of the following situations: Problem 16-55 Part f (Static) f. WC's taxable income (loss) without the dividend income or the DRD is $10,000. What is WC's book-tax difference associated with its DRD? Is the difference favorable or unfavorable? Is it permanent or temporary? DRD Answer is complete but not entirely correct. Favorable or Temporary or Unfavorable Permanent Favorable Permanent Book-tax Difference 170,000 x

! Required information Problem 16-55 (LO 16-2) (Static) [The following information applies to the questions displayed below.] Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible dividends-received deduction (DRD) in each of the following situations: Problem 16-55 Part f (Static) f. WC's taxable income (loss) without the dividend income or the DRD is $10,000. What is WC's book-tax difference associated with its DRD? Is the difference favorable or unfavorable? Is it permanent or temporary? DRD Answer is complete but not entirely correct. Favorable or Temporary or Unfavorable Permanent Favorable Permanent Book-tax Difference 170,000 x

Name: Sagar Required informationProblem 16-55 (LO 16-2) (Static)[The followi
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Description: Sagar Required informationProblem 16-55 (LO 16-2) (Static)[The following information applies to the questions displayed below.]Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TCstock. Compu

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 11DQ

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Required information [The following information applies to the questions displayed below.] Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible DRD in each of the following situations: b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). Deductible DRD
! Required information Problem 16-54 (LO 16-2) (Algo) [The following information applies to the questions displayed below.] Riverbend Incorporated received a $220,000 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $3,020,000 before deducting the dividends-received deduction (DRD), a $53,500 NOL carryover, and a $189,000 charitable contribution. Use Exhibit 16-6. (Round your tax rates to 1 decimal place. Leave no answer blank. Enter zero if applicable.) Problem 16-54 Part c (Algo) c. What is Riverbend's DRD assuming it owns 48 percent of Hobble Corporation? DRD
Problem 15-56 (LO 15-4) Determine the amount of taxable dividend, nontaxable distribution, and capital gain for the distributions made in each of the following cases: Required: a. Corporate E&P of $19,800, shareholder stock basis of $20,800, distribution of $10,400. b. Corporate E&P of $10,500, shareholder stock basis of $10,000, distribution of $9,500 c. Corporate E&P of $18,200, shareholder stock basis of $6,100, distribution of $23,600. d. Corporate E&P of $16,400, shareholder stock basis of $9,150, distribution of $30,450. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. a. b. C. d. Taxable dividend Nontaxable distribution Capital gain
Problem 11-5 (Algorithmic)Special Deductions and Limitations (LO 11.3) Fisafolia Corporation has gross income from operations of $423,000 and operating expenses of $359,550 for 2021. The corporation also has $42,300 in dividends from publicly-traded domestic corporations in which the ownership percentage was 45 percent. Below is the Dividends Received Deduction table to use for this problem.
Exercise 13-4 (Algorithmic) (LO. 5) Fargo Corporation holds $5,000,000o in accumulated E & P. It distributes to Leilei, one of its shareholders, land worth $1,158,720; basis of the land to Fargo is $965,600. Determine the Federal income tax consequences of the distribution to Fargo. Fargo Corporation recognizes a of $ The net to Fargo's E & P is $ The shareholder has dividend income of
Problem 15-14 (Algorithmic) (LO. 4) The profit and loss statement of Kitsch Ltd., an S corporation, shows $115,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. Selling expenses ($23,000) Tax-exempt interest income 3,450 Dividends received 10,350 5 1231 gain 8,050 Depreciation recapture income 11,500 Net income from passive real estate rentals 5,750 Long-term capital loss (6,900) Salary paid to owners (each) (13,800) Cost of goods sold (103,500) a. Compute Kitsch's nonseparately stated income or loss for the tax year. The entity's nonseparately stated computed is $ b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?
Problem 11-12 (Algo) [LO 11-3, 11-4] Luong Corporation, a calendar year, accrual basis corporation, reported $1.40 million of net income after tax on its financial statements prepared in accordance with GAAP. The corporation's books and records reveal the following information: ● ● ● Luong's federal income tax expense per books was $208,000. Luong's book income included $18,000 of dividends received from a domestic corporation in which Luong owns a 25 percent stock interest, and $8,000 of dividends from a domestic corporation in which Luong owns a 5 percent stock interest. Luong recognized $18,000 of capital losses this year and no capital gains. Luong recorded $12,000 of book expense for meals not provided by a restaurant and $14,000 of book expense for entertainment costs. Luong's depreciation expense for book purposes totaled $408,000. MACRS depreciation was $475,000. Required: a. Compute Luong's federal taxable income and regular tax liability. b. Prepare a Schedule M-1, page 6,…
Problem 16-7 (Algo) Multiple differences; calculate taxable income; balance sheet classification [LO16-2, 16-3, 16-5, 16-8] Sherrod, Inc., reported pretax accounting income of $92 million for 2021. The following information relates to differences between pretax accounting income and taxable income: Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $6 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $104 million. Depreciation is reported by the straight-line method, assuming a four-year…
Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $146,000. On that date, the fair value of the noncontrolling interest was $36,500, and Slice reported retained earnings of $44,000 and had $92,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Slice Corporation Debit $ Products Company Debit $ 82,000 109,000 82,000 164,000 Item Credit Credit 88,000 277,000 82,000 507,000 176, 200 119,000 20,000 10,000 44,000 Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared 44,000 10,000 6,000 22,000 $ 193,000 Accumulated Depreciation Accounts Payable Notes Payable Common Stock 40,000 266,920 285,000 299,000 207,000 32,280 $ 70,000 15,000 155,000 92,000 82,000 105,000 Retained Earnings Sales Income…
Required information Problem 16-54 (LO 16-2) (Algo) [The following information applies to the questions displayed below.] Riverbend Incorporated received a $402,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,950,000 before deducting the dividends-received deduction (DRD), a $64,500 NOL carryover, and a $187,000 charitable contribution. Use Exhibit 16-7. Note: Round your tax rates to 2 decimal places. Leave no answer blank. Enter zero if applicable. Problem 16-54 Part b (Algo) b. Assuming that it owns 10 percent of Hobble Corporation, what is Riverbend's marginal tax rate on the dividend after taking the DRD into account? Marginal tax rate %
6. Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally issued at an average price of $10 per share. How much gain or loss should Assad report on its statement of comprehensive income as a result of this transaction? a.$0 b.$20,000 loss c.$100,000 gain d.$20,000 loss and $100,000 gain
nEED IN 10 MINUTES 9. On January 1, 20x1, an entity purchased marketable equity securities for P2,500,000. The entity paid commission and taxes of P190,000. The equity securities do not qualify as financial asset held for trading. The entity made irrevocable election to present unrealized gain and loss in other comprehensive income. The securities have a market value of P2,600,000, and P2,750,000 on December 31, 20x1 and December 31, 20x2. On July 1, 2022, half of the securities are sold for P1,400,000. On July 1, 2022, the net increase/ decrease in retained earnings account is (sample answer: 10,500 increase or 10,500 decrease)