find the taxable income. carefully bcz its my account assignment question. Assume B Corporation has $450,000 of Ordinaryincome from its operations and $10,000 of interestreceived from its investments in bonds from Z firm.Also, it received $20,000 in dividends from aninvestment in stocks on Y Corporation, havingownership of 18% of that firm.1Find the taxable income.

To determine the taxable income for B Corporation, we need to consider the ordinary income, interest…

Answered: Assume B Corporation has $450,000 of…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 16P

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Assume B Corporation has $450,000 of Ordinary income from its operations and $10,000 of interest received from its investments in bonds from Z firm. Also, it received $20,000 in dividends from an investment in stocks on Y Corporation, having ownership of 18% of that firm. Find any deductions from the information provided above.(10)(Account)
General accounting
Financial accounting
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find the tax liability
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Assume that Pam company purchased a 25% interest of Sin Company for $1,000,000 on 1/1/X1. At the time, Sin Company's equity included $2 million of capital stock and $2 million of retained earnings. During year X1, Sin reported a $500,000 income in year X1 and $400,000 income in year X2. Sin paid $200,000 of dividends per year in X1 and X2. Assume that, during the audit of Sin's year X1 financial statements, the auditor discovered that Pam's investment in Sin was valued at $1,000,000 on 12/31/X2. As the auditor, what entries should Pam make to correct the problem.
On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Patrick paid the broker’s fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Patrick and Jinky are P15,200,000 and P2,500,000, respectively, and the book values of liability of Patrick and Jinky are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Patrick is overvalued by P200,000 and non-current asset of Jinky Corp is undervalued by P500,000. Patrick Corp. has estimated P400,000 representing cost of exiting the activity of Jinky Corp such as: cost of terminating employees and the cost of relocating terminated employees of Jinky. The agreement also provides that Patrick Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which…
On January 1, 20x1, Patrick Corp. acquired the identifiable net assets of Jinky Corp. by paying cash of P1,500,000; issuing 50,000 ordinary shares with a market value of P60 per share. Patrick paid the broker’s fee of P25,000; cost if SEC registration of shares issued amounting to P2,000 and indirect cost of P5,000. The book values of assets of Patrick and Jinky are P15,200,000 and P2,500,000, respectively, and the book values of liability of Patrick and Jinky are P4,000,000 and P800,000. The book value reflects fair value of assets and liabilities except that the current asset of Patrick is overvalued by P200,000 and non-current asset of Jinky Corp is undervalued by P500,000. Patrick Corp. has estimated P400,000 representing cost of exiting the activity of Jinky Corp such as: cost of terminating employees and the cost of relocating terminated employees of Jinky. The agreement also provides that Patrick Corp shall pay cash on January 10, 20x1, equal 120% of the amount by which…
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Assume B Corporation has $450,000 of Ordinary income from its operations and $10,000 of interest received from its investments in bonds from Z firm. Also, it received $20,000 in dividends from an investment in stocks on Y Corporation, having ownership of 18% of that firm.1 Find the taxable income.