7. Y Corporation, a family-closed corporation, had the following selected data for 201A, the accumulated earnings for which year the BIR considered to be improper: Non-taxable gain on life insurance of Y Co.'s president Income tax due 201A Quarterly income tax paid Dividend declared and paid during the year Reserve for maturing bonds in 201B Tax-exempt dividend income from resident corporation Net-operating loss carry-over (NOLCO) deducted Capital gain on direct sale to the buyer of shares of another domestic corporation, net of final tax Interest income on peso deposit, net of final tax Compute the amount of improperly accumulated earnings tax (IAET). P900,000 780,000 580,000 440,000 300,000 200,000 100,000 85,000 16,000

7. Y Corporation, a family-closed corporation, had the following selected data for 201A, the accumulated earnings for which year the BIR considered to be improper: Non-taxable gain on life insurance of Y Co.'s president Income tax due 201A Quarterly income tax paid Dividend declared and paid during the year Reserve for maturing bonds in 201B Tax-exempt dividend income from resident corporation Net-operating loss carry-over (NOLCO) deducted Capital gain on direct sale to the buyer of shares of another domestic corporation, net of final tax Interest income on peso deposit, net of final tax Compute the amount of improperly accumulated earnings tax (IAET). P900,000 780,000 580,000 440,000 300,000 200,000 100,000 85,000 16,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following dividends received by lon Corp. would NOT be subject to Part IV tax? O A. Dividends received from a wholly owned subsidiary of lon Corp. and, as a result of distributing this dividend, the wholly owned subsidiary received a dividend refund of $5,000. O B. Dividends received from lon Corp.'s portfolio of investments that are deductible in the calculation of taxable income for lon Corp. O C. Dividends received from an unconnected company that is deductible in the calculation of taxable income for lon Corp. O D. Dividends received from a wholly owned subsidiary of lon Corp. and the wholly owned subsidiary did not receive a dividend refund in the current year.
1. 1. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of 2021 was $210,000 ( including consideration for the dividends listed below) Marjorie Corporation also had the following information for 2021: Taxable income $350000: federal income tax $119,000 : dividends received ( less than 20% owned domestic corporation $ 100,000 : Cash dividends paid in 2021 $ 40,000: dividends paid January 31 2022 $ 20,000: Consent dividends $ 10,000: Excess charitable contribution $ 16,000. Net capital loss adjustment $ 8000. The Accumulated taxable income for purpose of the Accumulated Earnings Tax for Marjorie’s Corporation for the year of 2021 is 1.$97000 2 $90000 3 $110000 4 $100000 Answer is $97,000 please explain this how 2. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of…
The Parent consolidated group reports the following results for the tax year. Entity Income or Loss Parent $10,000 Sub1 (1,500) Sub2 4,000 Sub3 2,000 Do not round any division in your computations. If required, round your answers to the nearest whole dollar. If an amount is zero, enter "0". a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is $14,500 and the total consolidated tax liability is $3,045 b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? Entity Income or Loss Parent $ Sub1 $ Sub2 $ Sub3 $
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What is the income tax imposed on the corporate income earned by Bulldog and the income tax on the bonus paid to Rojas? (No plagiarism)
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