ss This year, Bobcat Company reports a deficit in current E&P of ($300,000) that accrued evenly throughout theyear. At the beginning of the year, Bobcat's accumulated E&P was $200,000. Bobcat distributed $200,000to its sole shareholder, Melanie, on June 30 of this year. Melanie's tax basis in the Bobcat stock before thedistribution was $75,000. Note: Leave no answer blank. Enter zero if applicable. Negative amount should beindicated by a minus sign. d. Prepare a draft of Bobcat's form 5452 for this year. You may assume that theJune 30 distribution was Bobcat's first and only distribution. Note: Visit the IRS website and download Form5452.

Answer a:Carrot's percentage of ownership in Root Corp. is used to compute his deduction for his…

Answered: This year, Bobcat Company reports a…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 37P

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Similar questions

In the current year, Madison Corporation had 50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a Warranty liability for financial reporting purposes of 5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes. Prepare the journal entry to record Madisons income taxes at the end of the year.
This year, Bobcat Company reports a deficit in current E&P of ($300,000) that accrued evenly throughout the year. At the beginning of the year, Bobcat's accumulated E&P was $200,000. Bobcat distributed $200,000 to its sole shareholder, Melanie Rushmore, on June 30 of this year. Melanie's tax basis in her Bobcat stock before the distribution was $75,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. How much of the $200,000 distribution is treated as a dividend to Melanie? Dividend
This year, Bobcat Company reports a deficit in current E&P of ($300,000) that accrued evenly throughout the year. At the beginning of the year, Bobcat's accumulated E&P was $200,000. Bobcat distributed $200,000 to its sole shareholder, Melanie Rushmore, on June 30 of this year. Melanie's tax basis in her Bobcat stock before the distribution was $75,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) c. What is Bobcat's balance in accumulated E&P on the first day of next year? Balance in accumulated E&P at the beginning of next year
This year, Bobcat Company reports a deficit in current E&P of ($300,000) that accrued evenly throughout the year. At the beginning of the year, Bobcat's accumulated E&P was $200,000. Bobcat distributed $200,000 to its sole shareholder, Melanie Rushmore, on June 30 of this year. Melanie's tax basis in her Bobcat stock before the distribution was $75,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. What is Melanie's tax basis in her Bobcat stock after the distribution? Tax basis
Hawkeye Company reports current E&P of $300,000 this year and accumulated E&P at the beginning of the year of $200,000. Hawkeye distributed $400,000 to its sole shareholder, Ray Kinsella, on December 31 of this year. Ray's tax basis in his Hawkeye stock before the distribution is $75,000. c. What is Hawkeye's balance in accumulated E&P as of January 1 of next year? Balance in accumulated E&P at the beginning of next year
This year, Soner Company reports a deficit in current E&P of ($304,000). Its accumulated E&P at the beginning of the year was $220,000. Sooner distributed $440,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock before the distribution is $86,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. What is Boomer's tax basis in his Sooner stock after the distribution? Tax basis
This year, Sooner Company reports a deficit in current E&P of ($304,000). Its accumulated E&P at the beginning of the year was $220,000. Sooner distributed $440,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock before the distribution is $86,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. How much of the $440,000 distribution is treated as a dividend to Boomer? Dividend
This year, Sooner Company reports a deficit in current E&P of ($424,000). Its accumulated E&P at the beginning of the year was $354,000. Sooner distributed $708,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer’s tax basis in his Sooner stock before the distribution is $122,500. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. How much of the $708,000 distribution is treated as a dividend to Boomer? b. What is Boomer’s tax basis in his Sooner stock after the distribution? c. What is Sooner’s balance in accumulated E&P on the first day of next year?
Jayhawk Company reports current E&P of $452,500 and a deficit in accumulated E&P at the beginning of the year of ($412,500). Jayhawk distributed $597,500 to its sole shareholder, Christine Rock, on the last day of the year. Christine’s tax basis in her Jayhawk stock before the distribution is $98,500. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) a. How much of the $597,500 distribution is treated as a dividend to Christine? b. What is Christine’s tax basis in her Jayhawk stock after the distribution?
In the current year, Nighthawk Corporation, a calendar year C corporation, has $3,700,000 of adjusted taxable income, $125,000 of business interest income, zero floor plan financing interest, and $1,400,000 of business interest expense. Assume that Nighthawk has average gross receipts for the prior three-year period of $33,000,000. Determine Nighthawk’s current-year deduction for busi- ness interest. Assume that Nighthawk has average gross receipts for the prior three-year period of $23,000,000. Determine Nighthawk’s current-year deduction for busi- ness interest.
Jayhawk Company reports current E&P of $310,000 and accumulated E&P of negative $282,500. Jayhawk distributed $505,000 to its sole shareholder, Christine Rock, on the last day of the year. Christine s tax basis in her Jayhawk stock is $128,750. What is Jayhawk s balance in accumulated E&P on the first day of next year?
Alvis Corporation reports pretax accounting income of $220,000, but due to a single temporary difference, taxable income is only $115,000. At the beginning of the year, no temporary differences existed.Required:1. Assuming a tax rate of 25%, what will be Alvis’s net income?2. What will Alvis report in the balance sheet pertaining to income taxes?

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