Roberto and Reagan are both 25 - percent owner or managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light generated a $130, 600 profit companywide made up of a $76, 600 profit from the Sacramento store, a ($29, 000) loss from the San Francisco store, and a combined $83,000 profit from the remaining stores. If Bright Light is taxed as a partnership and it is decided that both Roberto and Reagan will be allocated 70 percent of his own store's profit, with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan in total?
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- Roberto and Reagan are both 25 percent owners/managers for Bright Light Inc. Roberto runs the retail store in Sacramento, CA, and Reagan runs the retail store in San Francisco, CA. Bright Lingt Inc. generated a $127,800 profit company wide made up of a $75,800 profit from the Sacramento store, a ($27,000) loss from the San Francisco store, and a combined $79,000 profit from the remaining stores. If Bright Light is taxed as a partnership and decides that Roberto and Reagan will be allocated 70 percent of his own store's profit with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan? Multiple Choice ___ ($25,140.00) ___ ($18, 900.00) ___ $4,510.00 ___ $20,630.00Roberto and Reagan are both 25-percent owner or managers for Bright Light Incorporated. Roberto runs the retail store in Sacramento, California, and Reagan runs the retail store in San Francisco, California. Bright Light generated a $125,000 profit companywide made up of a $75,000 profit from the Sacramento store, a ($25,000) loss from the San Francisco store, and a combined $75,000 profit from the remaining stores. If Bright Light is taxed as a partnership and it is decided that both Roberto and Reagan will be allocated 70 percent of his own store's profit, with the remaining profits allocated pro rata among all the owners, how much income will be allocated to Reagan in total? Multiple Choice ($25,000) ($17,500) $5,000 $20,000Sidney and Gertrude own 40% of Bearcave Bookstore, an S corporation. The remaining 60% is owned by their son Boris. Sidney and Gertrude do not participate in operating or managing the store, and they invested $19,000 in the business when it opened in 2017. The bookstore reported the following net income (loss) for the years 2017 through 2020: 2017 2018 2019 2020 $(24,000) $(14,000) $(12,000) $5,000 a. Complete the table below to determine how much Sidney and Gertrude have at risk in Bearcave at the end of each year (2017–2020)? Note: Enter negative amounts beginning with a minus (-) sign. If a amount is zero, enter "0". 2017 2018 2019 2020 Investment/Beginning Amount at-risk $fill in the blank 683706031051064_1 $fill in the blank 683706031051064_2 $fill in the blank 683706031051064_3 $fill in the blank 683706031051064_4 Share of income (loss) fill in the blank 683706031051064_5 fill in the blank 683706031051064_6 fill…
- Renee operates a proprietorship selling collectibles over the Web, and last year she purchased a building for $24 million for her business. This year, Rene’s proprietorship reported revenue of $95.5 million and incurred total expenses of $88.6 million. Her expenses included cost of goods sold of $48.5 million. Sales commissions paid of $16.9 million. $10.5 million of interest paid on the building mortgage, and $12.7 million of depreciation. What’s Renee’s adjusted taxable income for purposes of calculating the limitation on business interest expense? What is the maximum amount of business interest expense that Renee can deduct this year, and how is the disallowed interest expense (if any) treated? Suppose that Renee’s revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation?Tugade, Masinsin and Biore are all famous athletes who have been operating are sports memorabilia store for many years. The partnership decided to liquidate its operation rather than sell the business because they are each about to retire and want to go their separate ways. they have been sharing Pprofits in the ratio of 40% to tugade, 40% to masinsin, and 20% to biore.[The following information applies to the questions displayed below.] Renee operates a proprietorship selling collectibles over the Web, and last year she purchased a building for $24 million for her business. This year, Renee's proprietorship reported revenue of $95.5 million and incurred total expenses of $88.6 million. Her expenses included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on the building mortgage, and $12.7 million of depreciation. c. Suppose that Renee's revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation? (Do not round intermediate calculations. Enter your answer in millions of dollar rounded to 2 decimal place.) Deductible Business Interest Expense $ 12.53 million
- Kim, Khloe, and Kendall started their own fashion company that is worth $5 million. Kim has 60% ownership in the company while Khloe has 10%, and Kendall has 30%. They purchased cross-purchase disability buyout insurance in case one of the owners becomes disabled and they would use the insurance proceeds to buyout the disabled owner's interests. Based on their scenario, which of the following statements is correct? In the event of Khloe's disability, the insurer would pay $3,000,000 to Kim and $1,500,000 to Kendall. In the event of Khloe's disability, the insurer would pay $250,000 to Kim and $250,000 to Kendall. In the event of Khloe's disability, the insurer would pay $300,000 to Kim and $150,000 to Kendall. In the event of Khloe's disability, the insurer would pay $333,333 to Kim and $166,667 to Kendall.Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. Ellie has a basis in Otter Enterprises of $80,000 at the beginning of the year. Linda has a basis in Otter Enterprises of $60,000 at the beginning of the year. Assume that Otter Enterprises has no debt. Otter Enterprises has $320,000 of gross income and $210,000 of operating expenses. In addition, Otter has a long-term capital gain of $15,000 and makes distributions to Ellie and Linda of $25,000 each. Required: Discuss the impact of this information on the taxable income of Otter, Ellie, and Linda if Otter is:Chana contributed $6000 for 50% interest in a mobile boutique. She also contributed a point of sale system with a market value of $900 and adjusted basis of $600.the boutique earned a profit of $18000. What is Chana partnership basis
- Mr. Don is the director of A-Design Inc., a federally incorporatedcompany in Canada, specializing in the design and manufacturing ofarmrests for the wheelchair industry. A-Design invested $100,000 in aproduction machine, which has a useful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned tooffer two purchasing options to the clients of his company. Option 1:$250 deposit upfront$500 yearly fee for 5 years Option 2:$1300 deposit upfront$300 yearly fee for 3 years Assuming an interest rate of 5% per year compounded every 6 months over aperiod of 5 years on the money put in the bank, how much will A-Design have in its bank account at the end of the fifth year?Atty. Diokno owns 30% of the capital and profits of his law office. The law office reported P5,000,000 profits in 2021. The partnership is engaged in business processing outsourcing. How much will Atty. Diokno receive?Mr. Don is the director of A-Design Inc., a federally incorporatedcompany in Canada, specializing in the design and manufacturing ofarmrests for the wheelchair industry. A-Design invested $100,000 in aproduction machine, which has a useful life of 10 years, and put $10,000 in its bank account. In an attempt to improve company sales and profits, Mr. Don planned tooffer two purchasing options to the clients of his company. Option 1:$250 deposit upfront$500 yearly fee for 5 years Option 2:$1300 deposit upfront$300 yearly fee for 3 years Assuming an interest rate of 5% per year compounded monthly over a period of 5 years on the money put in the bank, how much will A-Design have in its bank account at the end of the fifth year?