!Required information[The following information applies to the questions displayed below.]Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxableincome of $10,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee(Flower paid $900 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of theyear.Note: Leave no answer blank. Enter zero if applicable.b. Flower distributed $6,000 on February 14 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report?Note: Do not round intermediate calculations.TotaldividendsAnswer is complete but not entirely correct.February14August 16,000 $ 30,000

Dividend income is the income distributed by the company of the free reserve available with them.

Answered: come of $10,000. In addition, Flower…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 28CE

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Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?
! Required information [The following information applies to the questions displayed below.) Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable Income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) c. What amount of capital gain (if any) would Tiny and Tim report on the distributions in part (b) if their stock bases are $2.000 and $10,000, respectively? (Do not round intermediate calculations.) Answer is complete but not entirely correct. S 4,000 5 23,000 Capital gain Tiny Capital gain-Tim
Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) a. What is Flower’s current E&P? b. Flower distributed $6,000 on February 15 and $30,000 on August 1. What total amount of dividends will Tiny and Tim report? (Do not round intermediate calculations.) c. What amount of capital gain (if any) would Tiny and Tim report on the distributions in part (b) if their stock bases are $2,000 and $10,000, respectively? (Do not round intermediate calculations.)
[The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Interest income (related to business income) Municipal bond income. Government fines Overall net income. Distributions Show Transcribed Text Ordinary Income Section 179 expense a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Municipal bond income Unadjusted basis of qualified property Allocated wages Distributions Qualified business income…
! Required information [The following information applies to the questions displayed below.] Bedrock Incorporated is owned equally by Barney Rubble and his wife Betty, each of whom holds 1,000 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 500 of her shares for $25,000 per share on December 31 of this year. Betty's tax basis in each share is $5,000. Bedrock has current E&P of $10,000,000 and accumulated E&P of $50,000,000. a. What are the amount and character (capital gain or dividend) recognized by Betty as a result of the stock redemption, assuming only the “substantially disproportionate with respect to the shareholder” test is applied? Dividend
Give me answer within an hour please I will give you upvote immediately its very urgent ....
! Required information [The following information applies to the questions displayed below] Flintstone Company is owned equally by Fred and his sister Wilma, each of whom holds 2,300 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 400 of her shares for $26,200 per share on December 31 of this year. Wilma's tax basis in each share is $5,150. Flintstone has current E&P of $12,080,000 and accumulated E&P at the beginning of the year is $50,020,000. b. Given your answer to part (a), what is the tax basis in the remaining 1,900 shares Wilma owns in the company? Income tax basis in remaining shares Check m
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(1) XYZ Corporation is a calendar-year corporation. Ann and Paul each own 50% of the corporation's stock. Ann's adjusted basis in her XYZ stock is 7,800 and Paul's adjusted basis in his stock is $4,300. During the year 2019, XYZ makes the following cash distributions split equally between Ann and Paul: April 30 October 31 $15,000 $10,000 What is the amount, character and source of each section 301 distribution to Ann and Paul under each of the following assumptions? (a) Accumulated Earnings and Profits as of 1/1/19 of $-0-. Current Earnings and Profits for 2019 of $16,000 all of which is attributable to the period May 1 through December 31. (b) Accumulated Earnings and Profits as of 1/1/19 of $12,000. Current Earnings and Profits for 2019 of $8,000. (c) Accumulated Earnings and Profits as of 1/1/19 of negative $15,000. Current Earnings and Profits for 2019 of $22,000.
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come of $10,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee lower paid $900 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the ear.