A resident company pays a partly franked dividend of $700 (80% franked) to a residentshareholder. Explain the Income Tax implications of the shareholder if he/she is:(a) an Individual who is subject to the Top Marginal Tax rate.(b) an Individual with Marginal Tax rate of 15%.(c) a company with other Assessable Income of $100,000 and a carried forward loss of$40,000.(d) a company with other Assessable Income of $88,000 and deductions of $7,000.(e) a partnership with two (2) resident Individual partners sharing partnership profits orlosses equally.

Comment- Multiple Question Asked. a) Individual who is subject to Top Marginal Tax Rates…

Answered: A resident company pays a partly…

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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(Corporate income tax) Meyer Inc. has taxable income (earnings before taxes) of $284,000. Calculate Meyer's federal income tax liability using the tax table shown in the popup window: Taxable Income Marginal Tax Rate $0−$50,000 15% $50,001−$75,000 25% $75,001−$100,000 34% $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% Over $18,333,333 35% . What are the firm's average and marginal tax rates? The firm's tax liability for the year is
The Dakota Corporation had a 2021 taxable income of $21,000,000 from operations after all operating costs but before (1) interest charges of $3,900,000, (2) dividends received of $330,000. (3) dividends paid of $2,250,000, and (4) income taxes (the firm's tax rate is 21 percent). a. Calculate Dakota's income tax liability. (Round your answer to the nearest dollar amount.) Income tax liability I
In 2010, Garner Grocers had taxable income of -$2,000,000. The corporate tax rate is 25%. Assume that the company takes full advantage of the Tax Code’s carry-forward provision. In 2021, Garner has taxable income of $1,000,000. What is the amount of taxes the company paid in 2021? a. $20,000 b. $8,000 c. $0 d. $90,000 e. $586,500
Marvel Corporation (a C-corporation) has the following operating profit for 2019 through 2021. Year 2019 2020 2021 Operating profit ($60,000) $30,000 $50,000 Assume the marginal tax rate is flat 21%. (1) Discuss the tax consequences in year 2019, 2020, and 2021, respectively. (2) Why does the tax law allow business taxpayers to carry the net operating loss (NOL)?
1)During the year, CDE Corporation earned enough profits to pay dividends to its shareholders. CDE is a C corporation. What are the tax consequences of this distribution? The corporation will increase their earnings and profits by the amount distributed. The corporation will reduce its taxable income by the amount distributed to the shareholders. The corporation will pay a flat tax of 21% on the amount distributed. The shareholders also include their dividends received in taxable income. There are no direct tax consequences for either the corporation or the shareholders. 20 Choose the response that correctly describes a guaranteed payment. A loan payment from the partnership to pay back a loan from a partner. A loan payment from the partner to pay back a loan from a partnership. A payment made to a partner from the profits of the partnership. A payment made to a partner without regard to the income of the partnership. 3)Which of the following expenses may a partnership…
Assume a firm has a net operating loss of $100. The statutory tax rate is 20%. Which of the below is correct? Select One: a.The firm will recognize a deferred tax liability of $20. b.The firm not recognize any deferred tax asset or deferred tax liability. c.The firm will recognize a deferred tax asset of $20. d.The firm will recognize a deferred tax liability of $80.
WCS Inc. owns some common stock of Palmer Inc. and it just received $1,800 of dividend. If WCS Inc. is subject to a tax rate of 21%, what is the tax on this investment income? A. $148 OB. $164 OC. $189 OD. $226 OE. $282 OF. $324 G. $378 H. None of the above
You are a shareholder in an S corporation. The corporation earns $2.36 per share before taxes. As a pass through entity, you will receive $2.36 for each share that you own. Your marginal tax rate is 20%. How much per share is left for you after all taxes are paid? The amount that remains is how much per share. (Round to the nearest cent.)
A C corporation earns $4 per share before taxes. The corporate tax rate is 21%, the personal tax rate on dividends is 15%. What is the total amount $ of taxes paid (company + individual) if the company pays a $2 dividend?
Which statement below is incorrect in relation to the taxation of companies? A.Companies are not entitled to a discount on capital gains B.Dividends paid by a company are included in the assessable income of resident shareholders C.The (flat) rate of tax for companies is 30% (unless entitled to a lower rate of corporate tax) D.Companies are entitled to a 50% discount in capital gains
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During the current year, the Squamata Corporation, a regular C corporation, has $30,000 in ordinary income, a longterm capital loss of $20,000, and a short-term capital gain of $10,000a. Calculate the Squamata Corporation's tax liability for the current year. b. Explain the nature and amount of any carrybacks or carryforwards that the corporation isentitled to use.

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