Required information [The following information applies to the questions displayed below.] Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) b. Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and report? (Do not round intermediate calculations.) Total dividends Answer is complete but not entirely correct. February 15 S Return to q 6,000 August 1 $ 23,000

Required information [The following information applies to the questions displayed below.] Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) b. Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and report? (Do not round intermediate calculations.) Total dividends Answer is complete but not entirely correct. February 15 S Return to q 6,000 August 1 $ 23,000

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 28CE

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! Required information [The following information applies to the questions displayed below.) Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable Income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) c. What amount of capital gain (if any) would Tiny and Tim report on the distributions in part (b) if their stock bases are $2.000 and $10,000, respectively? (Do not round intermediate calculations.) Answer is complete but not entirely correct. S 4,000 5 23,000 Capital gain Tiny Capital gain-Tim
! Required information [The following information applies to the questions displayed below.] Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $10,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $900 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. Note: Leave no answer blank. Enter zero if applicable. b. Flower distributed $6,000 on February 14 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report? Note: Do not round intermediate calculations. Total dividends Answer is complete but not entirely correct. February 14 August 1 6,000 $ 30,000
[The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Interest income (related to business income) Municipal bond income. Government fines Overall net income. Distributions Show Transcribed Text Ordinary Income Section 179 expense a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Municipal bond income Unadjusted basis of qualified property Allocated wages Distributions Qualified business income…
Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) a. What is Flower’s current E&P? b. Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report? (Do not round intermediate calculations.) c. What amount of capital gain (if any) would Tiny and Tim report on the distributions in part (b) if their stock bases are $2,000 and $10,000, respectively? (Do not round intermediate calculations.)