A shareholder owns 45% of a S corporation stock for 175 days and 40% of the S corporation's stock for the remainingdays of the tax year (365 day year - not a leap year). If the ordinary income of the S corporation is $100,000, whatwill be the shareholder's share of the ordinary income of the S corporation?

The objective of the question is to calculate the shareholder's share of the ordinary income of the…

Answered: A shareholder owns 45% of a S…

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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You’re a 40% shareholder of ABC, Inc., an S corporation. ABC’s ordinary busi-ness income for 2019 was exactly $100,000. ABC distributed $20,000 to you in your capacity as a shareholder during 2019. On your 2019 Form 1040, you will report ___ of gross income from ABC. Why is that the correct amount plzzz ans asap.....
X Corp, a personal holding company, is owned by two individuals and has gross income as follows: $30,000 gross profits from sales, tax-exempt interest of $3,000, dividends of $5,000 from a 10% owned corporation, and taxable interest of $40,000. What is the amount of X Corp's personal holding company income?
On January 1, 2023, Kinney, Inc., an S corporation, reports $33,600 of accumulated E & P and a balance of $84,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of Kinney's stock. Kinney's nonseparately stated ordinary income for the year is $42,000. Kinney distributes $50,400 to each shareholder on July 1, and it distributes another $25,200 to each shareholder on December 21. How are the shareholders taxed on the distributions? Ignore the 20% QBI deduction. Do not round intermediate computations. If required, round your final answers to the nearest dollar. Erin and Frank each report $ dividend income for the July 1 distribution and $ distribution. Assuming that the shareholders have sufficient basis in their stock, Erin and Frank each receive a tax-free distribution from AAA. $ each for the December 21
22. At the beginning of the tax year, Tim had a $2,000 stock basis in the S corporation, World, Inc. Tim owns 25% of the outstanding World, Inc. stock. At the end of the tax year, World, Inc. reported on its Schedule K, a $16,000 ordinary loss, $4,000 of interest income, and $2,000 in nondeductible expense. Tim also has $10,000 in flow-through reportable income from other S corporations. How much of the World, Inc. ordinary loss can Tim deduct on his personal return? . $0 • $2,500 . $3,000 $4,000
WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100 shares. On September 30, he gave 25 shares to his brother and 40 shares to his daughter. WRT’s ordinary income for the year was $232,000. Required:What portion of this income must each shareholder include in income? (Assume 365 days in a year. Round income per day of ownership to 4 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount.)
Charleston Corporation (CC) now operates as a "regular" corporation, but it is considering a switch to S Corporation status. CC is owned by 100 stockholders who each hold 1% of the stock, and each faces a personal tax rate of 24%. The firm carns $3,000,000 per year before taxes, and since it has no need for retained earnings, it pays out all of its earnings as dividends. Assume that the corporate tax rate is 34% and the personal tax rate is 24%. How much more (or less) spendable income would each stockholder have if the firm elected S Corporation status? a. $7,752 b. $2,472 $9.732 d $5,472 & $3,000
Irene received the following dividends in 2021: • an eligible dividend of $16,550 •a non-eligible dividend of $12,450 •a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld •a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.
Princeton Company holds a 40 percent interest in shares of Yale Company common stock. On June 19 of the current year, Princeton sells part of this investment. What accounting should Princeton make on June 19? What accounting will Princeton make for the remainder of the current year?
am. 115.

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