Aubrey Corporation changes from a regular C corporation in 2014 to an S corporation as of the beginning of 2015. For 2015, the corporation has $40,000 of built-in gain and $45,000 in accounting income. Determine any corporate tax that may be imposed on Aubrey Corporation, and the amount to be reported by the sole shareholder.
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- Ironwood Corporation has ordinary taxable income of $65,000 in 2019, and a short-term capital loss of $15,000. What is the corporation's tax liability for 2019? $7,500 $5,250 $10,500 $13,650 None of the aboveAssume that Puritan Corporation operates in an industry for which NOL carryback is allowed. Puritan Corporation reported the following pretax accounting income and taxable income for its first three years of operations: 2023 $ 348,000 2024 (534,000) 2025 765,000 Puritan's tax rate is 25% for all years. Puritan elected a loss carryback. As of December 31, 2024. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What would Puritan report as net income for 2025? Multiple Choice $623.554 $573,750 $143,448 $621,5621. Compute the income tax liability for Green Corporation that is a regular C Corporation operating on a calendar year basis. In 2018, Green Corporation has a taxable income of $170,000 (a) $59,500 (b) $35,700 (c) $30,800 (d) $68,000 (e) None of the above 2. Wren Corporation (a minority shareholder in Lark Corporation) has made loans to Lark Corporation that become worthless in the current year. (k) Wren Corporation is not permitted a deduction for the loans. (l) The loans result in a nonbusiness bad debt deduction to Wren Corporation. (m) The loans provide Wren Corporation with a business bad debt deduction. (n) Wren claims a capital loss due to the uncollectible loans. (o) None of the above.
- P Corporation uses the calendar year as its tax year and the accrual method as its overall accounting method. S Corporation uses a fiscal year ending June 30 as its tax year and the cash method as its overall accounting method. On July 31, 2022, P acquires all of S's stock, and the P-S affiliated group elects to file a consolidated tax return for 2022. a. What tax year must the group use in filing its consolidated tax return? b. What overall accounting method(s) can P and S Corporations use? c. What tax returns must the corporations file?The following facts relate to Krung Thep Corporation: Deferred tax liability, January 1, 2015, $40,000 Deferred tax asset, January 1, 2015, $0 Taxable income for 2015, $115,000 Pretax financial income for 2015, $200,000 Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000 Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 Tax rate for all years, 40% The company is expected to operate profitably in the future. Instructions: Compute income taxes payable for 2015. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income statement for 2015, beginning with the line “income before income taxes.”XYZ made four equal estimated tax payments totaling $440,000 ($110,000 per quarter). For purposes of estimated tax liabilities, assume XYZ was in existence in 2021 and that in 2021 it reported a tax liability of $612,000. During 2022, XYZ determined its taxable income at the end of each of the four quarters as follows: Quarter-end First Second Third Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. Note: Do not round intermediate calculations. Round your answers to the nearest dollar amount. Required: a. Compute XYZ's taxable income. b. Compute XYZ's income tax liability. e. Determine the quarters for which XYZ is subject to underpayment of estimated tax penalties. Note: Round "Annualization Factor" for Fourth quarter to 2 decimal places. Complete this question by e ering your answers in the tabs below. Required A Cumulative taxable income (loss) $ 470,000 $ 1,170,000 $1,699,700 Installment Determine the quarters for which XYZ is subject to…
- Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Adjusted Basis FMV Cash $ 25,250 $ 25,250 Accounts receivable 46,300 46,300 Inventory 101,550 222,050 Land 192,000 221,200 Totals $ 365,100 $ 514,800 In 2023, Virginia Corporation reported business income of $60,500 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $113,650. Assume the original facts except Virginia Corporation had a net operating loss carryover of $28,200 from its time as a C corporation. The built-in gains tax is $______Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Adjusted Basis FMV Cash $ 25,250 $ 25,250 Accounts receivable 46,300 46,300 Inventory 101,550 222,050 Land 192,000 221,200 Totals $ 365,100 $ 514,800 In 2023, Virginia Corporation reported business income of $60,500 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $113,650. Assume the original facts except Virginia Corporation is a C corporation, and its taxable income was $3,600. The built-in gains tax is $______Cantona Pte Ltd has chargeable income before exempt income of $500,000. It is wholly owned by Canton Inc, a company tax resident in Country Z, since its incorporation on 15 January 2017 until 15 December 2018. On 16 December 2018, 15% shares held by Canton Inc were sold to Ms Peony Wong. Its first set of accounts was prepared for the period ended 31 December 2017. Calculate its net tax payable for Year of Assessment 2020. Assume there is no corporate tax rebate
- a. and b. Compute MV Corporation's 2024 taxable income given the following information relating to its year 1 activities. Also, compute MV's Schedule M-1 assuming that MV's federal income tax expense for book purposes is $100,000. Use Exhibit 16-7. Gross profit from inventory sales of $500,000 (no book–tax differences). Dividends MV received from 25 percent-owned corporation of $100,000 (assume this is also MV's pro rata share of the distributing corporation's earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL) are $350,000 (no book–tax differences). NOL carryover from 2022 of $10,000. Cash charitable contribution of $120,000.Wineseller Corporation is owned by Mortimer Smith, its sole shareholder. Mortimer has a $20,000 basis in his Wineseller Corporation stock. Mortimer is in the 37% tax bracket. Wineseller Corporation is in the 21% tax bracket. Wineseller Corporation has the following balances as of December 31, 2021. Accumulated Earnings and Profits (AEP) ($600,000) Current Earnings and Profits $ 70,000 On December 31, 2021, Wineseller Corporation distributes $160,000 to Mortimer. What are the tax consequences to Mortimer from receiving this distribution from Wineseller Corporation?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.
