Hello give Answer Bread Corporation is a C corporation with earnings of $150,000. Itpaid $60,000 of dividends to its sole shareholder, Gerald. Geraldalso owns 100% of Butter, an S Corporation. Butter had nettaxable income of $40,000 and made a $30,000 distribution toGerald. What total income will Gerald report from Bread andButter's activities?er's activia. $90,000b. $190,000c. $150,000d. $100,000AZ*W SAW

Step 1: Understand Gerald's income from Bread Corporation (C Corporation)Bread Corporation is a C…

Answered: Bread Corporation is a C corporation…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 1BCRQ

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X Corp, a personal holding company, is owned by two individuals and has gross income as follows: $50,000 gross profits from sales, capital gains of $10,000, dividends of $5,000 from a 10% owned corporation, and interest of $60,000. What is the amount of X Corp's personal holding company income?
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Crane and Loon Corporations, two unrelated C corporations, have the following transactions for the current year. Gross income from operations Expenses from operations Dividends received from domestic corporations (15% ownership) Crane Loon $193,500 $309,600 270,900 325,080 116,100 232,200 Click here to access the dividends received deduction table. a. Compute the dividends received deduction for Crane Corporation. $ b. Compute the dividends received deduction for Loon Corporation. $
The profit and loss statement of Treadwell Ltd.., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. Selling expenses ($53,000) Tax-exempt interest income 7,950 Dividends received 23,850 § 1231 gain 18,550 Depreciation recapture income 26,500 Net income from passive real estate rentals 13,250 Long-term capital loss (15,900) Salary paid to owners (each) (31,800) Cost of goods sold (238,500) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?
The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. Selling expenses Tax-exempt interest income Dividends received ($21,200) 3,000 9,000 § 1231 gain 7,000 Depreciation recapture income 11,000 Net income from passive real estate rentals 5,000 Long-term capital loss (6,000) Salary paid to owners (each) (12,000) Cost of goods sold (91,000) a. Compute Kitsch's nonseparately stated income or loss for the tax year. The entity's nonseparately stated is $ b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders? c. What is James Billings' share of tax-exempt interest income, if any? Round your answer to the nearest dollar. Is the income taxable to him this year?
Price Corporation, Bucek Corporation, and Askews Corporation have the following income and expenses for the year. Assume that each corporation owns between 20% and 80% of any dividend paying corporation. Calculate each corporation's dividend received deduction ("DRD"). Askews Corp. Price Corp. Bucek Corp. Operating Income 2,550,000 2,550,000 2,550,000 Operating Expenses (2,700,000) (2,650,000) (2,575,000) Dividends Received 200,000 190,000 232,000 Step 1: Step 2: Step 3: DRD
Khaki Company is a Subchapter S corporation. It properly reported net income of $100,000 for financial statement purposes. It had charitable contributions of $5,000 and dividend income of $10,000 from a large domestic publicly traded company. What is the ordinary business income of Khaki Company that will be reported to its shareholders on Schedule K-1? Multiple Choice $90,000. $93,000. $95,000. $100,000.
Marathon Inc. (a C corporation) reported $1,650,000 of taxable income in the current year. During the year, it distributed $165,000 as dividends to its shareholders as follows: (Leave no answer blank. Enter zero if applicable.) $8,250 to Guy, a 5 percent individual shareholder. $24,750 to Little Rock Corp., a 15 percent shareholder (C corporation). $132,000 to other shareholders. a. How much of the dividend payment did Marathon deduct in determining its taxable income? b. Assuming Guy's marginal ordinary tax rate is 37 percent, how much tax will he pay on the $8,250 dividend he recieved from Marathon Inc. c. What amount of tax will Little Rock Corp.pay on the $24,750 dividend it recieved from Marathon Inc. (50 percent dividends recieved deduction)?
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?
XYZ Corporation, a calendar year C Corporation, has $100,000 gross business receipts, $5,000 interest income from corporate bonds, $20,000 qualified dividend income from a 5% owned C Corporation, $110,000 business expenses, and $2,000 charitable contribution. How much is XYZ's taxable income (or net operating loss) for the current year?\\n\\nGroup of answer choices\\n\\n$0 Taxable income.\\n\\n$3,000 Taxable income.\\n\\n$6,500 Taxable income.\\n\\n$6,750 Taxable income.
During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions. Income from operations $660, 000 Expenses from operations 760, 000 Dividends received from Brown Corporation 240,000 Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?

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