A corporation had the following assets and liabilities at the beginning and end of this year. Liabilities $ 36, 440 54, 068 Beginning of the year End of the year a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $650 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $650 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Assets $ 85,000 133, 500 Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases. (Decreases in equity should be indicated with a minus sign.) Beginning of the year-Equity Owner investments Dividends Net income (loss) End of the year-Equity $ EA $ 69 b. 0 $ 0 $ 0 $ 0 $ d. 0

A corporation had the following assets and liabilities at the beginning and end of this year. Liabilities $ 36, 440 54, 068 Beginning of the year End of the year a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $650 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $650 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Assets $ 85,000 133, 500 Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases. (Decreases in equity should be indicated with a minus sign.) Beginning of the year-Equity Owner investments Dividends Net income (loss) End of the year-Equity $ EA $ 69 b. 0 $ 0 $ 0 $ 0 $ d. 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
Please Correct solution and Deply Explanation And Do not give images format
tyu
Ross Company is a C corporation providing property management services. Ross has used the cash method since inception because its gross receipts did not exceed $26,000,000. This year its average annual gross receipts for the prior three years crossed the $26,000,000 mark, requiring Ross to change from the cash method to the accrual method. At the end of its prior year, Ross had accounts receivable of $850,000 and accounts payable of $540,000. Compute and explain the adjustment to taxable income that Ross must make due to the change in accounting method. When must Ross include this adjustment in its income?
Following particulars have been obtained from the accounts of a company.i) Remuneration of Managing Director 20,000ii) Provision for Bad debts 10,000iii)Provision for taxation 1,50,000iv) Depreciation written off 80,000v) Loss on sale of investments 70,000vi) Depreciation allowable according to Income-Tax Provisions 70,000vii) Net profit after considering the above items 4,50,000Calculate remuneration of Managing Director at 5% of net profit. The net profit should be as per provisions of Companies Act.
In the current year, Phillip Hard earned the following income: • Employment income • Business Income $90,000 $15,000 • Property income 2,000 • Gains: • Shares of Corporation X $12,000 • Personal-use property 7,000 • Listed personal property 1,600 20,600 • Losses: • Shares of Corporation Y (15,000) • Shares of small business corporation (4,000) • Listed personal property (300) (19,300) $108,300 Determine net income in accordance with the aggregating formula in Section 3 of the ITA. Assume Other deductions total $2,000.
Citrus Corporation is a calendar year S corporation with the following current year information: Operating loss Liabilities: Notes payable, Big Apple Bank. 40,000 Notes payable, Grapefruit (individual) 40,000 $(240,000) On January 1, Orange (an individual) bought 50% of Citrus Corporation stock for $60,000. How much of the operating loss may Orange deduct currently? Assume the excess business loss limitation does not apply. O $80,000 $60,000 o $100,000 $120,000
Accounting The Storm Corporation, a calendar year taxpayer, incurred the following items. Compute Storm's net operating loss. Operating Income - $300,000 Operating Expenses - $350,000 Dividend Received (30% ownership) - $100,000 $30,000 $50,000 $20,000 None of the other answers
a) Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated b) If at the beginning of the year, Archer had a basis of 20,000 compute Archer’s basis at the end of the year. c) Assume that Voyager reported a loss of $70,000 instead (and no separately stated items or distributions). If Janeway had a basis of 10,000 in her stock at the beginning of the year, what is the amount of loss she can report on her return?
am. 76.
A Corporation had the following liabilities at December 31, 1996: Accounts payable P 110,000 Uncollateralized notes, 8%, due 7/1/97 800,000 Accrued expenses 70,000 Contingent liability 900,000 Deferred income tax liability 50,000 Senior bonds, 7% due 3/3/1/97 2,000,000 The contingent liability is an accrual for possible losses on a P2,000,000 lawsuit filed against A. A’s legal counsel expects the suit to be settled in 1998, and has estimated that A will be liable for damages in the range of P900,000 to P1,500,000. The deferred income tax liability is note related to an asset for financial reporting and is expected to reverse in 1998. What amount should A report in its December 31, 1996 balance sheet as current liabilities?
A sole proprietorship had the following assets and liabilities at the beginning and end of this year.