a. $2,000.
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7.
![Tandy Corp., a calendar year S corporation,
has $5,000 of accumulated earnings and
profits (AE&P) as of the beginning of 2022. At
the end of 2022, pre-distribution AAA (i.e., the
AAA balance before considering the
distribution) totals $8,000. During 2022, Polly,
the sole shareholder, receives a cash
distribution of $12,000 from Tandy. Polly's pre-
distribution basis in her stock (i.e., before
adjustment for the distribution) is $10,000.
Tandy Corp. elected S status in 1999. How
much of this distribution should Polly report in
her 2022 personal tax return as capital gain?
a. $2,000.
b. zero.
c. $4,000.
d. $5,000.
How much of this distribution should Polly
report in her 2022 personal tax return as
ordinary income? a. $2,000.
a. zero.
b. $4,000.
c. $5,000.
d. $2,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9a81e89-2c71-430b-b2ab-d050d4f3187b%2F1d9559d2-4e54-4c8d-ad78-7b021fb96316%2Fldbkumx_processed.jpeg&w=3840&q=75)
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- Gray, Inc., a C corporation, has taxable income from operations of 1,452,000 for 2019. It also has a net long-term capital loss of 355,000 from the sale of a subsidiarys stock. The year 2019 is the first year in the last 10 years that Gray has not had at least 500,000 per year of net long-term capital gains. What is Grays 2019 taxable income? What, if anything, can it do with any unused capital losses?On January 1, 2023, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has twor shareholders, Erin and Frank, each of whom owns 500 shares of Kinney's stock. Kinney's nonseparately stated ordinary income for the year is $5,000. Kinney distributes $6,000 to each shareholder on July 1, and it distributes another $3,000 to each shareholder on December 21. How are the shareholders taxed on the distributions? Ignore the 20% QBI deduction. Round any division to five decimal places. If required, round final answers to the nearest dollar. Erin and Frank each report December 21 distribution. Assuming tax-free 1,000 dividend income for the July 1 distribution and s X each for the that the shareholders have sufficient basis in their stock, Erin and Frank each receive a X distribution from AAA.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
- On January 1, 2020, Kinney, Inc., an S corporation, reports $11,200 of accumulated E & P and a balance of $28,000 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 $14,000. Kinney distributes $16,800 to each shareholder on July 1, and it distributes another $8,400 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 $ 0 x dividend income for the July 1 distribution and $ 0 X each for the December 21 distribution. Assuming that the shareholders have sufficient basis in their stock, both Erin and Frank each receive a tax-free ✓ 0 X distribution from AAA.In 2021, Unreliable Corporation (a C-corporation) had operating income of $1,000,000. It had a NLTCL of$(400,000). In addition, it received a $500,000 dividend from RealGood Corporation. Unreliable owns 22% of the stock of RealGood Corporation. Here is the history of the net long-term capital gains Unreliable had over the past 5 years: a Determine Unreliable Corporation’s taxable income for 2021.b. Determine Unreliable Corporation’s tax liability for 2021c. Assume that Unreliable Corporation is your client. Summarize the tax consequences they have as a result of the various income and gains they earned in 2021.Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000). In 2021, Clampett, Incorporated, sells its entire inventory for $60,000 (basis $30,000). Assume the corporate tax rate is 21 percent and that Clampett, Incorporated, had a $20,000 net operating loss carryover from its prior C corporation years. How much built-in gains tax does Clampett, Incorporated, pay in 2021?
- The Honeymoon Co. is a Canadian controlled private corporation with active business income of $750,000 in 2020. Dividends were received during 2020 from a taxable Canadlan corporation in the amount of $80,000. The company recognized a $50,000 capital gain during 2020. The company's year-end is December 313t. Additional Information is as follows Net capital loss carry-over from 2019 is $30,000. Non capital loss carry-over from 2019 is $70,000. Required: Calculate the following for the company for the 2020 tax year A. Net income for tax purposes B Taxable income C. Part I Federal Tax - Identify amounts for 1) basic federal tax, 2) federal abatement, 3) refundable tax on investment income, 4) small business deduction, 5) general rate reduction), and 6) the total federal tax.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.....Timpanogos Inc. is an accrual-method, calendar-year corporation. For 2020, it reported financial statement income after taxes of $1,342,000. Timpanogos provided the following information relating to its 2020 activities: Life insurance proceeds as a result of CEO’s death $200,000 Revenue from sales (for both book and tax purposes) $2,000,000 Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. $21,000 Charitable contributions $180,000 Cost of goods sold for book and tax purposes $300,000 Interest income on tax-exempt bonds $40,000 Interest paid on loan obtained to purchase tax-exempt bonds $45,000 Rental income payments received and earned in 2020 $15,000 Rental income payments received in 2019 but earned in 2020 $10,000 Rental income payments received in 2019 but not earned by year-end $30,000 Tax Depreciation $55,000 Book Depreciation $25,000…
- Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($37,000), inventory (FMV $57,000, basis $24,000), accounts receivable (FMV $37,000, basis $37,000), and equipment (FMV $57,000, basis $77,000). In 2021, Clampett, Incorporated, sells its entire inventory for $57,000 (basis $24,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2021 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2021? Multiple Choice O O $9,870 $13,000 $2,730 $0 None of the choices are correct.In the 2022, Crimson, Inc., a calendar C corporation, has income from operations of $180,000 and operating deductions of $120,000. In addition Crimson had: $30,000 of dividends from a 15% stock ownership in a domestic corporation. Capital losses of $20,000 and capital gains of $15,000 Cash charitable contribution to a qualitied charity of $30,000 Calculate Crimson tax liability for 2022In 2023, Avalanche Corporation has $70,000 of net income from operations during the current year. In addition, Avalanche received $180,000 of dividend income from a corporation in which Avalanche has a 35% ownership interest. What is Avalanche's dividends received deduction for 2023?
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