Haresh [The following information applies to the questions displayed below.]Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporationbecame effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not haveany earnings and profits from its prior years as a C corporation).AdjustedBasisAssetCash$ 20,000Accounts receivable40,00090,000150,000FMV$ 20,00040,000200,000175,000$ 300,000$ 435,000InventoryLandTotalsIn 2023, Virginia Corporation reported business income of $50,000 (this would have been its taxable income if it were stilla C corporation).What is Virginia's built-in gains tax in each of the following alternative scenarios?a. During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory soldwas $55,000.

Answer:The built-in gains tax for Virginia Corporation in scenario (a) is $0. Explanation:Step 1:…

Answered: [The following information applies to…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 47P

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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
Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $ 27,000 $ 27,000 Accounts receivable 44,200 44,200 Inventory 188,000 242,000 Land 178,000 134,000 Totals $ 437,200 $ 447,200 Tempe Corporation's business income for the year was $47,000 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $266,000. a. What is its built-in gains tax in 2022? b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,800. What is its built-in gains tax in 2022? c. Assume the original facts, except the land was valued at $168,000 instead of…
Tempe Corporation is a calendar - year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $31,500 $ 31,500 Accounts receivable 46, 900 46,900 Inventory 206, 000 269,000 Land 196,000 143,000 Totals $ 480, 400 $ 490, 400 Tempe Corporation's business income for the year was $ 51,500 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $ 302,000. a. What is its built - in gains tax in 2022 ? b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $ 8,800. What is its built - in gains tax in 2022?
Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $31,500 $ 31,500 Accounts receivable 46,900 46,900 Inventory 206,000 269,000 Land 196,000 143,000 Totals $ 480, 400 $ 490,400 Tempe Corporation's business income for the year was $51,500 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $ 302,000. a. What is its built-in gains tax in 2022? b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $8,800. What is its built-in gains tax in 2022?
Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Cash Accounts receivable Inventory Land Totals Adjusted Basis $ 23,000 41,800 172,000 41,800 218,000 162,000 126,000 $ 398,800 $ 408,800 FMV $ 23,000 Tempe Corporation's business income for the year was $43,000 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $234,000. Built-in gains tax c. Assume the original facts, except the land was valued at $152,000 instead of $126,000. What is Tempe Corporation's built-in gains tax in 2022?
Accounting Exile Corporation has operating income of $42,000 and operating expenses of $69,000 in 2021. In 2022, it generates operating income of $85,000 and operating expenses of $74,000. What is Exile’s 2022 taxable income, as reported on its Form 1120?
Requir [The following information applies to the questions displayed below.] Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Cash Accounts receivable Adjusted Basis $ 20,000 40,000 90,000 150,000 FMV $ 20,000 40,000 200,000 175,000 Inventory Land Totals $ 300,000 $ 435,000 In 2023, Virginia Corporation reported business income of $50,000 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? a. During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory sold was $55,000.
Voldomort's pretax accounting income for 2025 income statement was $830,000. of this amount, $40,000 is non-taxable revenue from municipal bonds. There were no differences between accounting income and taxable income other than those described above and there were no timing(temporary) differences at the beginning of 2025. prepare a journal entries to record Voldemort 2025 income taxes what is the net incone
X-Rays was organized in January 2019 as a corporation in the jurisdiction of Puerto Rico. During 2020, the taxable (natural) year, it obtained the following results under the accumulation method (“accrual”) ended on December 31, 2020. Income Services $ 425,000 Dividends 28,000 Total $ 453,000 Expenses Administration 275,000 Food 12,000 Entertainment 10,000 Depreciation 10,000 Data: Dividend income comes from a domestic corporation in Puerto Rico where X-Rays owns 12% of the common stock. The corporation generated a net operating loss of $ 200,000 in 2019. The depreciation claimed under GAAP is equal to the depreciation granted for taxes. Determine the net taxable income (loss) of X-Rays as of December 31, 2020 in Puerto Rico.
For each of the following transactions, indicate wheth-er a special adjustment must be made in computing R Corporation's current E&P. Answer assuming that E&P has already been adjusted for current taxable income. a. During the year, the corporation paid estimated Federal income taxes of $25,000 and estimated state income taxes of $10,000. 5. The corporation received $5,000 of interest income from its investment in tax-exempt bonds. c. The corporation received a $10,000 dividend from General Motors Corporation. d. The corporation purchased machinery for $9,000 and expensed the entire amount in accordance with Code § 179. e. The corporation reported a § 1245 gain of $20,000. f. The corporation had a capital loss carryover of $7,000 from the previous year. This year the corporation had capital gains before consideration of the loss of $10,000
At December 31, 2025, Whispering Inc. had a deferred tax asset of $31,600. At December 31, 2026, the deferred tax asset is $62.000. The corporation's 2026 current tax expense is $55,300. What amount should Whispering report as total 2026 income tax expense? Total income tax expense for 2026 $
Below is the Retained Earnings account for the year 2025 for Coronado Corp. Retained earnings, January 1, 2025 Add: Gain on discontinued operations (net of tax) Net income Gain on sale of investments (net of tax) Cumulative effect on income of prior years in changing from LIFO to FIFO inventory valuation in 2025 (net of tax) Refund on litigation with government, related to the year 2022 (net of tax) Recognition of income earned in 2024, but omitted from income statement in that year (net of tax) Deduct: Write-off of goodwill (net of tax) Cash dividends declared Retained earnings, December 31, 2025 Retained Earnings, January 1, as Reported CORONADO CORP. Retained Earnings Statement For the Year Ended December 31, 2025 Correction of Error from Prior Period Adjustment for Change in Accounting Principle (Net of Tax) Retained Earnings, January 1, as Adjusted Add V: Net Income /(Loss) Less : Cash Dividends Declared Retained Earnings, December 31 $14,400 170,700 43,600 55,000 Prepare a…

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