A distribution of money is made from an S corporation to its sole shareholder.Determine the tax consequences by completing the table below.In each case the shareholder's basis is $165,000 at the time of the distribution.AAA50,000E&P-0-Distribution150,000Tax Free ROCCapital GainDividend End Basis End AAA250,00050,000 200,00050,000 300,000 280,000250,000 300,000 450,00050,000100,000 200,000650,000 250,000 600,000

Distribution of $50,000:The entire distribution of $50,000 is treated as a non-taxable return of…

Answered: A distribution of money is made from an…

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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Hansen Corporation. a C Corporation (mot a manufacturer) reports the following items in income and expenses for 2021 Gross Revenue $900,000 Dividend Received from 30% owned Corp 200,000 LTCG 30,000 STCL 12000 City of Lee's Summit Bond Interest 10000 COGS 375000 Administrative Expenses 325000 Charitable Contribution 60,000 Compute Hansen's C Corp Taxable income? a. 246,200 b. 276200 c. 275000
Z (Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $319,000. Calculate Meyer's federal income tax liability using the tax table shown in the popup window: What are the firm's average and marginal tax rates? The firm's tax liability for the year is $. (Round to the nearest dollar.) 2 30 F2 W S Data table iple X भ command Taxable Income $0-$50,000 $50,001-$75,000 $75,001-$100,000 $100,001-$335,000 39% $335,001-$10,000,000 34% $10,000,001-$15,000,000 35% $15,000,001-$18,333,333 38% 35% Over $18,333,333 (Click on the icon in order to copy its contents into a spreadsheet.) # 3 Get more help - 80 E D $ 4 C 000 000 F4 R Print F % 5 Marginal Tax Rate 15% 25% 34% V F5 T Done G MacBook Air A 6 P F6 B Y & 7 H 44 F7 U N X 00 * 8 J DII FB 1 1 M 9 K MOSISO BB F9 O 1 O < I H L F10 Clear all P 11 • V command : ; FIX { + + 11 Check answer = 1 ? option 14 1 F12 } 1 A delete 1
QUESTION 1 "Consider a C corporation. The corporation earns $4 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 50% of its earnings to its shareholders as a dividend. The corporate tax rate is 30%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, enter 0.05 as an answer; or if the answer is $500, write enter 500 as an answer."
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?
Compute the taxable income & Earnings and profit for a corporation receipts from services receipts from services 75,000 dividend income 5000 interest from municipal bonds 2,000 additional capital from shareholders 10,000 wages & rent 30,000 fines 2,000 section 179 exp 20,000 estimated fed tav pd 5,000
The tax rates are as shown below: Taxable Income $0 - 50,000 50,001 - 75,000 75,001 100,000 100,001 - 335,000 Tax Rate 15% 25% 34% 39% Your firm currently has taxable income of $80,700. How much additional tax will you owe if you increase your taxable income by $21,900?
PROBLEM FIVE Wrap Ltd. is a Canadian-controlled private corporation. At the end of 2022, Wrap had the following tax account balances. Non-capital losses $ 8,000 Net capital losses 2,000 Non-eligible RDTOH 7,000 Dividend refund from non-eligible dividends 1,000 CDA 12,000 For the current year, 2023, net income for tax purposes is $261,000. Included in this amount is the following. Income from an active business carried on in Canada $200,000 Taxable capital gain 6,000 Eligible dividends from Canadian public companies 15,000 Canadian bond interest 40,000 The following is a summary of other information for Wrap Ltd. for the 2023 year. Taxable income Required: $236,000 Capital dividend paid 12,000 Eligible dividend paid 10,000 Non-eligible dividend paid 75,000 Small business deduction 38,000 Total Federal Part I tax payable 31,920 Determine the dividend refund for 2023. Would the dividend refund change if Wrap Ltd. was not a CCPC but instead was a private corporation or a public…
Determine how much of the distribution is taxed as dividend income and how much is a return of capital. The IB corp has accumulated E&P of $20000 on 1/1/20xx. During the year there is a deficit in E &P of $30000 earned evenly through out the year. On July 1, of 20xx BI corp. Distributes $12000 in cash to Maximo it's only shareholder.
Required information [The following information applies to the questions displayed below] Riverbend Incorporated received a $410,000 dividend from Stock it held in Hobble Corporation. Riverbend's taxable Income is $2,520,000 before deducting the dividends-received deduction (DRD), a $83,000 NOL carryover, and a $181,000 charitable contribution. Use Exhibit 16-7 Note: Round your tax rates to 2 decimal places. Leave no answer blank. Enter zero if applicable. e. What is Riverbend's DRD assuming it owns 93 percent of Hobble Corporation (and is part of the same affiliated group)? DRD
A C corporation earns $9.10 per share before taxes. The corporate tax rate is 39%, the personal tax rate on dividends is 15%, and the personal tax rate on non-dividend income is 36%. What is the total amount of taxes paid if the company pays a $5 dividend? A. $4.30 В. $6.02 Ос. $5.16 D. $3.44
PROBLEM FIVE Wrap Ltd. is a Canadian-controlled private corporation. At the end of 2022, Wrap had the following tax account balances. Non-capital losses $ 8,000 Net capital losses 2,000 Non-eligible RDTOH 7,000 Dividend refund from non-eligible dividends 1,000 CDA 12,000 For the current year, 2023, net income for tax purposes is $261,000. Included in this amount is the following. Income from an active business carried on in Canada $200,000 Taxable capital gain 6,000 Eligible dividends from Canadian public companies 15,000 Canadian bond interest 40,000 The following is a summary of other information for Wrap Ltd. for the 2023 year. Taxable income Required: $236,000 Capital dividend paid 12,000 Eligible dividend paid 10,000 Non-eligible dividend paid 75,000 Small business deduction 38,000 Total Federal Part I tax payable 31,920 Determine the dividend refund for 2023. Would the dividend refund change if Wrap Ltd. was not a CCPC but instead was a private corporation or a public…
X Corp has $500 of book income. Included in the book income is $10 of dividends from a 10%-owned corporation and $20 of tax-exempt interest. What is the tax income reconciled to on Schedule M-1?

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