6. Complete the table below for the 100% shareholder of the S-corporation.Schedule M-2AccumulatedSchedule M-2OtherSchedule M-2Earnings andTax basis inAdjustmentAdjustmentsS-Corp eventstockAccountAccountProfitsaccount Capital gainsAmounts on Jan. 1,202430,00010,0003,00020,000What is the effect if theS-corporation hastaxable profit of $50,000in 2024?What is the effect if theS-corporation makes a$62,000 cash distributionin 2024?What is the effect if theS-corporation makes a$21,000 cash distributionin 2025, and there is noincome or loss?What is the effect if theS-corporation makes a$20,000 cash distributionin 2026, and there is noincome or loss?What are the balances atthe end of 2026?

Tax basis refers to the original value of an asset for tax purposes, typically representing the cost…

Answered: 6. Complete the table below for the…

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6. Complete the table below for the 100% shareholder of the S-corporation.

SWFT Corp Partner Estates Trusts

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ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 48P

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Question

6. Complete the table below for the 100% shareholder of the S-corporation.
Schedule M-2
Accumulated
Schedule M-2
Other
Schedule M-2
Earnings and
Tax basis in
Adjustment
Adjustments
S-Corp event
stock
Account
Account
Profits
account Capital gains
Amounts on Jan. 1,
2024
30,000
10,000
3,000
20,000
What is the effect if the
S-corporation has
taxable profit of $50,000
in 2024?
What is the effect if the
S-corporation makes a
$62,000 cash distribution
in 2024?
What is the effect if the
S-corporation makes a
$21,000 cash distribution
in 2025, and there is no
income or loss?
What is the effect if the
S-corporation makes a
$20,000 cash distribution
in 2026, and there is no
income or loss?
What are the balances at
the end of 2026?

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