Homework Assignment 3
docx
keyboard_arrow_up
School
Langara College *
*We aren’t endorsed by this school
Course
TAXATION
Subject
Accounting
Date
Apr 3, 2024
Type
docx
Pages
2
Uploaded by ChancellorFlagWaterBuffalo38
Homework Assignment #3 AP 14-2, 14-5 (Case A and B), 14-7 (Part D(i)) AP 14-2 (Acquisition of Control Rules) Boudin Inc. was incorporated 10 years ago in New Brunswick. On incorporation, all of the shares were issued to Andre Boudin. The company carried on a business of distributing health food prod- ucts throughout the Maritime provinces. The company has always used a December 31 taxation year end. The company operated successfully for a number of years. However, late in 2019, increased com- petition resulted in a steep decline in the sales of Boudin Inc. Because of this the company reported a business loss of $42,000 in 2020 and $123,000 in 2021. In addition, the company realized an allowable capital loss of $32,000 in 2021 as a result of the disposition of some temporary investments. There were no capital gains realized in 2021. In early 2022, seeing no real hope for a return to profitable operations, Mr. Boudin begins a search for a buyer for his company’s shares. On May 1, 2022, all of the shares are sold to Healthy Bites Ltd., a manufacturer of health food products. This company hopes to be able to reverse the for tunes of Boudin Inc. Mr. Boudin is not related to the individuals who control Healthy Bites Ltd. For the short taxation year of January 1, 2022, to April 30, 2022, resulting from the AOC, Boudin Inc. reported a business loss of $48,000. The reported business loss includes a write-down of inventories to their FMV as required by ITA 10(1) on April 30, 2022, and a bad debt deduction for doubtful accounts receivables, as a result of the application of ITA 111(5.3). On April 30, 2022, Boudin Inc. owned the following properties with the following tax attributes: Property Cost ucc FMV Long-term investments* $ 47000 N/A $ 82,000 Land 207,000 N/A 305,000 Building 465,000 $360,000 485,000 Equipment 350,000 190,000 150,000 *Healthy Bites intends to sell the investments as soon as possible. Required: A. Indicate any non-capital and net capital loss balances that are tainted as a result of the AOC. Assume the company will elect to trigger any eligible capital gains or recapture using FMV as the elected amount for property with accrued but unrealized gains (ITA 111(4)(e)). B. If Healthy Bites Ltd. decides to only use the election(s) required to offset non-capital and net capital losses that would become tainted as a result of the AOC, indicate the properties on which the elections should be made and the amounts that should be elected. C. Advise Healthy Bites Ltd. as to the recommended course of action (Part A or B). AP 14-5 (Investment Tax Credits) Case A In 2022, Lumina Ltd., a CCPC with a December 31 taxation year end, hired 18 eligible appren- tices—six were hired at the beginning of January, six more August 1, and the remaining six November 1. Each of the apprentices began with an annual salary of $45,000, all of which qualified for the apprenticeship tax credit. Based on the hiring dates, the first group of six each earned $45,000 for the year while the second group each earned $18,750 and the third group each earned $7500. The total amount paid to these individuals in 2022 is $427,500. Lumina Ltd. also acquired new class 53 machinery for $640,000 on November 27, 2022. This equip- ment is to be used in New Brunswick. The machinery was delivered to the company site in early December and was put into use immediately. The machinery is qualified property for investment tax credit purposes. Required: Describe the 2022 and 2023 income tax consequences of the salary and wages paid to apprentices and the purchase of the class 53 machinery. Specifically, determine whether the amounts qualify for any investment tax credit and, if so, the amount of that tax credit and the 2023 implications of claiming any available tax credit in 2022. Assume that the company will claim the maximum CCA possible on the class 53 machinery in 2022, that the opening UCC in class 53 for 2022 is nil, that no additions will be made to the class in 2023, and that the company will have suf- ficient Part 1 income tax to fully use any investment tax credits in 2022.
Case B Taurus Ltd., a CCPC with a December 31 taxation year end, has been conducting scientific research and experimental development (SRED), which qualifies for additional federal investment tax credit incentives based on its “SRED expenditure limit.” Taurus has never been associated with another corporation since its incorporation in 2016. The company has provided the following information for its 2021 and 2022 taxation years: 2021 2022 Taxable income $ 735,000 $ 850,000 TCEC 16,900,000 21,440,000 Required: Determine Taurus's SRED expenditure limit for its 2022 taxation year. AP 14-7 (Corporate Surplus Distributions) Grado Ltd. is a CCPC with a December 31 taxation year end. The company was incorporated in 2013. All of the existing shareholders are individuals. The company’s condensed balance sheet, prepared in accordance with generally accepted accounting principles (ASPE), as of December 31, 2021, is as follows: Total assets $858,000 Current liabilities $122,000 Long-term liabilities 384,000 Shareholders’ equity: 700 preferred Class A (paid-up capital) $ 14,000 1,000 common shares (paid-up capital) 87,000 Retained earnings 251,000 352,000 Total equities $858,000 Required: Determine the income tax consequences of each of the following independent trans- actions. Income tax consequences are considered to include the amount of taxable dividends, the dividend tax credit, any taxable capital gains and allowable capital losses, and any changes to the ACB of the relevant property and the paid-up capital (PUC) of a class of shares. Assume that any dividends paid or deemed to be paid by Grado Ltd. would be non-eligible. D. (i) Mrs.Wiebe owns 100 of the common shares. She purchased the shares for $18 a share in 2014.The company redeems these shares for $90 per share in June 2022.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
Problem 10-73 (LO 10-4) (Algo)
[The following information applies to the questions displayed below.]
Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started:
Expense
Date
Amount
Attorney fees for articles of incorporation
February 10
$ 35,500
March 1–March 30 wages
March 30
4,900
March 1–March 30 rent
March 30
2,350
Stock issuance costs
April 1
34,000
April 1–May 30 wages
May 30
12,250
Note: Leave no answer blank. Enter zero if applicable.
Problem 10-73 Part a (Algo)
a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation?
arrow_forward
Exercise 12-8 (Algorithmic) (LO. 7)
Cherry Corporation, a calendar year C corporation, is formed and begins business on 2/1/2021. In connection with its formation, Cherry
incurs organizational expenditures of $51,300.
Round the per month amount to two decimal places. Round your final answer to the nearest dollar.
Determine Cherry Corporation's deduction for organizational expenditures for the current year.
264.44 X
arrow_forward
Sh14
Please help me.
Solution
arrow_forward
Exercise 5-16 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $34,000. Current E & P for the year is $102,000, earned
evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth
sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $54,400 ($27,200 to Elizabeth
and $27,200 to Jonathan) on April 30 and a total of $95,200 ($47,600 to Jonathan and $47,600 Marshall) on December 31.
Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their
stock for any amount that is treated as return of capital.
If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations.
Round final answers to the nearest dollar.
April 30 distribution of $54,400
December 31 distribution of…
arrow_forward
Exercise 5-16 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $36,000. Current E & P for the year is $108,000, earned
evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth
sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $57,600 ($28,800 to Elizabeth
and $28,800 to Jonathan) on April 30 and a total of $100,800 ($50,400 to Jonathan and $50,400 Marshall) on December 31.
Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their
stock for any amount that is treated as return of capital.
If an amount is zero, enter "0". Round final answers to the nearest dollar.
April 30 distribution of $57,600
December 31 distribution of $100,800
From Current
E & P
From Accumulated
E & P
Treated as
Return of Capital
$
$
0
arrow_forward
canadian tax principles-2
When Banff Ltd. was formed, it issued 265,000 shares for $20 per share. Sachiko Nakajima purchased 30,000 of these shares at issuance. In 2021, a creditor of Banff Ltd. has agreed to accept 35,000 new Banff Ltd. shares in settlement of debt with a face value of $800,000. At this time, the shares are valued at $25 per share. Shortly after this debt settlement, in 2021, Sachiko sells all of her shares to an arm’s length party for $28 per share.
Required: FIRST, describe the tax consequence(s) to all of the shareholders of Banff Ltd. as a result of the of settlement of debt in exchange for new common shares. While calculations are required, ignore the dividend gross up and tax credit in your description. SECOND, describe the tax consequences to Sachiko Nakajima resulting from the sale of her Banff Ltd. shares. While calculations are required, ignore the dividend gross up and tax credit in your description. Make that you show all of your calculations and that…
arrow_forward
Bata Corporation a calendar year c
Corporation was formed and began
operaions on Apill1, 2022. The following
expenses were incurred during the first
year (April 1 through December 31)
Expenses of temporary directions and of
organizational meetings $27000
Fee paid to the state of incorporation
1,000
Accounting services incident to
organization 15,500
Legal services for drawing the corporate
charter and bylaws 10,500
Expenses incident to the printing and
sale of stock certificates 6,000
Assuming a § 248 election, what is the
Baba's immediate expense under
organizational expenditures for 2022?
arrow_forward
Exercise 5-16 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $114,000. Current E & P for the year is $342,000, earned
evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth
sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $182,400 ($91,200 to
Elizabeth and $91,200 to Jonathan) on April 30 and a total of $319,200 ($159,600 to Jonathan and $159,600 Marshall) on December 31.
Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their
stock for any amount that is treated as return of capital.
If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations.
Round final answers to the nearest dollar.
April 30 distribution of $182,400
From Current
E & P
From…
arrow_forward
Exercise 19-24 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $54,000. Current E & P for the year is $162,000, earned
evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth
sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $86,400 ($43,200 to Elizabeth
and $43,200 to Jonathan) on April 30 and a total of $151,200 ($75,600 to Jonathan and $75,600 Marshall) on December 31.
Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their
stock for any amount that is treated as return of capital.
If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations.
Round final answers to the nearest dollar.
April 30 distribution of $86,400
December 31 distribution of…
arrow_forward
Exercise 19-25 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $168,000. Current E & P for the year is
$504,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to
April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a
total of $268,800 ($134,400 to Elizabeth and $134,400 to Jonathan) on April 30 and a total of $470,400 ($235,200 to Jonathan
and $235,200 to Marshall) on December 31.
Determine the allocation of the distributions by completing the table below. Assume that the shareholder have sufficient basis in
their stock for any amount that is treated as return of capital.
If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent
computations. Round final answers to the nearest dollar.
April 30 distribution of $268,800
December 31…
arrow_forward
Exercise 19-22 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $138,000. Current E & P for the year is $414,000, earned
evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth
sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $220,800 ($110,400 to
Elizabeth and $110,400 to Jonathan) on April 30 and a total of $386,400 ($193,200 to Jonathan and $193,200 Marshall) on December 31.
Determine the allocation of the distributions by completing the table below. Assume the shareholders have sufficient basis in their stock for
any amount that is treated as return of capital.
If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final
answers to the nearest dollar.
April 30 distribution of $220,800
December 31 distribution of…
arrow_forward
Exercise 19-22 (Algorithmic) (LO. 3)
On January 1 of the current year, Rhondell Corporation has accumulated E & P of $188,000. Current E & P for the year is $564,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders Rhondell from January 1 to April 30. On May 1,
Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $300,800 ($150,400 to Elizabeth and $150,400 to Jonathan) on April 30 and a total of $526,400 ($263,200 to Jonathan and $263,200 Marshall) on
December 31.
Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital.
If an amount is zero, enter "O". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar.
April 30 distribution of $300,800
December 31 distribution…
arrow_forward
am. 119.
arrow_forward
PROBLEM 4
An entity grants 100 cash share appreciation rights (SARs) to each of its 500 employees, on conditions that the employees remain in its employ for the next three years. During Year 1, 35 employees leave. The entity estimates that a further 60 will leave during Years 2 and 3. During Year 2, 40 employees leave and the entity estimates that a further 25 will leave during Year 3. During Year 3, 22 employees leave. At the end of Year 3, 150 employees exercise their SARs, another 140 exercise their SARs at the end of Year 4 and the remaining 113 employees exercise their SARs at the end of Year 5.
The entity estimates the fair value of the SARs at the end of each year in which a liability exists as shown below. At the end of Year 3, all SARs held by the remaining employees vest. The intrinsic values of the SARs at the date of exercise, which equal the cash paid out) at the end of Years 3, 4 and 5 are also shown below.
Year Fair Value Intrinsic Value
1 P 14.40
2…
arrow_forward
Ethics: Compilation Facts:
• A Chicago area manufacturing company (“JKL”) has 2 unrelated owners. The CPA firm (“Flexible”) for the manufacturing company prepares annual compiled financial statements and corporate tax returns (1120S). In addition, Flexible prepares the personal income tax returns for one of the owners – a different tax accountant prepares the personal income tax returns for the other owner. The Company has a December 31st year end.
• Toward the end of February each year, there is an annual meeting in the western suburbs, with the following in attendance: the 2 owners of JKL, Flexible’s CPA Partner, the tax accountant for the other owner, and pension consultants.
• In anticipation of the meeting, Flexible prepares and distributes draft financial statements, and a year to date General Ledger; everything is complete except the amount of any pension accrual and the final amount of inventory.
• The purposes of the meeting are to determine: 1. the pension accrual 2. the…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Related Questions
- Problem 10-73 (LO 10-4) (Algo) [The following information applies to the questions displayed below.] Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: Expense Date Amount Attorney fees for articles of incorporation February 10 $ 35,500 March 1–March 30 wages March 30 4,900 March 1–March 30 rent March 30 2,350 Stock issuance costs April 1 34,000 April 1–May 30 wages May 30 12,250 Note: Leave no answer blank. Enter zero if applicable. Problem 10-73 Part a (Algo) a. What is the total amount of the start-up costs and organizational expenditures for Nicole's corporation?arrow_forwardExercise 12-8 (Algorithmic) (LO. 7) Cherry Corporation, a calendar year C corporation, is formed and begins business on 2/1/2021. In connection with its formation, Cherry incurs organizational expenditures of $51,300. Round the per month amount to two decimal places. Round your final answer to the nearest dollar. Determine Cherry Corporation's deduction for organizational expenditures for the current year. 264.44 Xarrow_forwardSh14 Please help me. Solutionarrow_forward
- Exercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $34,000. Current E & P for the year is $102,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $54,400 ($27,200 to Elizabeth and $27,200 to Jonathan) on April 30 and a total of $95,200 ($47,600 to Jonathan and $47,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $54,400 December 31 distribution of…arrow_forwardExercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $36,000. Current E & P for the year is $108,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $57,600 ($28,800 to Elizabeth and $28,800 to Jonathan) on April 30 and a total of $100,800 ($50,400 to Jonathan and $50,400 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". Round final answers to the nearest dollar. April 30 distribution of $57,600 December 31 distribution of $100,800 From Current E & P From Accumulated E & P Treated as Return of Capital $ $ 0arrow_forwardcanadian tax principles-2 When Banff Ltd. was formed, it issued 265,000 shares for $20 per share. Sachiko Nakajima purchased 30,000 of these shares at issuance. In 2021, a creditor of Banff Ltd. has agreed to accept 35,000 new Banff Ltd. shares in settlement of debt with a face value of $800,000. At this time, the shares are valued at $25 per share. Shortly after this debt settlement, in 2021, Sachiko sells all of her shares to an arm’s length party for $28 per share. Required: FIRST, describe the tax consequence(s) to all of the shareholders of Banff Ltd. as a result of the of settlement of debt in exchange for new common shares. While calculations are required, ignore the dividend gross up and tax credit in your description. SECOND, describe the tax consequences to Sachiko Nakajima resulting from the sale of her Banff Ltd. shares. While calculations are required, ignore the dividend gross up and tax credit in your description. Make that you show all of your calculations and that…arrow_forward
- Bata Corporation a calendar year c Corporation was formed and began operaions on Apill1, 2022. The following expenses were incurred during the first year (April 1 through December 31) Expenses of temporary directions and of organizational meetings $27000 Fee paid to the state of incorporation 1,000 Accounting services incident to organization 15,500 Legal services for drawing the corporate charter and bylaws 10,500 Expenses incident to the printing and sale of stock certificates 6,000 Assuming a § 248 election, what is the Baba's immediate expense under organizational expenditures for 2022?arrow_forwardExercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $114,000. Current E & P for the year is $342,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $182,400 ($91,200 to Elizabeth and $91,200 to Jonathan) on April 30 and a total of $319,200 ($159,600 to Jonathan and $159,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $182,400 From Current E & P From…arrow_forwardExercise 19-24 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $54,000. Current E & P for the year is $162,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $86,400 ($43,200 to Elizabeth and $43,200 to Jonathan) on April 30 and a total of $151,200 ($75,600 to Jonathan and $75,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $86,400 December 31 distribution of…arrow_forward
- Exercise 19-25 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $168,000. Current E & P for the year is $504,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $268,800 ($134,400 to Elizabeth and $134,400 to Jonathan) on April 30 and a total of $470,400 ($235,200 to Jonathan and $235,200 to Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholder have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $268,800 December 31…arrow_forwardExercise 19-22 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $138,000. Current E & P for the year is $414,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $220,800 ($110,400 to Elizabeth and $110,400 to Jonathan) on April 30 and a total of $386,400 ($193,200 to Jonathan and $193,200 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $220,800 December 31 distribution of…arrow_forwardExercise 19-22 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $188,000. Current E & P for the year is $564,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $300,800 ($150,400 to Elizabeth and $150,400 to Jonathan) on April 30 and a total of $526,400 ($263,200 to Jonathan and $263,200 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "O". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $300,800 December 31 distribution…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT