A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital Accumulated Earnings - unrestricted Accumulated Earnings - restricted Income tax per annual income tax return Income tax for the first three quarters Final tax on passive income at 20% Capital gains tax at 15% Compute the amount of improperly accumulated earnings tax (IAET). P 10,000,000 8,000,000 2,000,000 300,000 240,000 60,000 45,000
A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital Accumulated Earnings - unrestricted Accumulated Earnings - restricted Income tax per annual income tax return Income tax for the first three quarters Final tax on passive income at 20% Capital gains tax at 15% Compute the amount of improperly accumulated earnings tax (IAET). P 10,000,000 8,000,000 2,000,000 300,000 240,000 60,000 45,000
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 10MC
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