Need help with this general accounting question Desert Corporation, an S Corporation, had accumulatedearnings and profits of $120,000 at the beginning of 2020.Mark and Linda each own 50% of the stock and have abasis in their stock of $60,000 on January 1, 2020. Desertdoes not make any distributions during 2020 but had$240,000 of ordinary income. In 2021, ordinary incomewas $120,000, and distributions were $120,000. What isMark's basis at January 1, 2022?A) $120,000B) $180,000C) $240,000D) $300,000

To calculate Mark's basis at January 1, 2022, we need to consider the following factors: Beginning…

Answered: Desert Corporation, an S Corporation,…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter13: Corporations: Earning & Profits And Distributions

Section: Chapter Questions

Problem 21P

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Can you please solve this financial accounting question?
Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2021, Jamaal's share of S corporation income is $4,000, and he received a $7.000 distribution from the S corporation. How much total income does Jamaal report in 2021 from these transactions? Multiple Choice $0 $4,000 $6,000 $7,000 None of the choices are correct.
(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.
Suppose that at the beginning of 2019 José's basis in his S corporation stock was $17,000 and José has directly loaned the S corporation $5,000. During 2019, the S corporation reported an $75,000 ordinary business loss and no separately stated items. How much of the ordinary loss is deductible by José if he owns 40 percent of the S corporation? Explain the rule and show computation.
XYZ Corporation (an S corporation) is owned by Jane and Rebecca, who are each 50 percent shareholders. At the beginning of the year, Jane's basis in her XYZ stock was $54,000. XYZ reported the following tax information for 2022. Description Amount Sales revenue $ 716,000 Cost of goods sold (214,000) Long-term capital gain 22,000 Dividend income 26,000 Tax-exempt interest 17,000 Salary to owners (134,000) Employee wages (64,000) Depreciation expenses (10,600) Miscellaneous expenses (13,500) Overall net income $ 344,900 What amount of ordinary business income is allocated to Jane?Hint: you might want to work on question b) first. Identify all separated items, then the remaining will be ordinary business income What is the amount and character of separately stated items allocated to Jane? What is Jane's basis in her XYZ Corporation stock at the end of the year? Please avoid answers in image format thank you
XYZ Corporation (an S corporation) is owned by Jane and Rebecca, who are each 50 percentshareholders. At the beginning of the year, Jane's basis in her XYZ stock was $49,000. XYZreported the following tax information for 2022.Description AmountSales revenue $ 721,000Cost of goods sold (209,000)Long-term capital gain 17,000Dividend income 18,500Tax-exempt interest 12,000Salary to owners (129,000)Employee wages (59,000)Depreciation expenses (11,100)Miscellaneous expenses (12,250)Overall net income $ 348,150Required:a. What amount of ordinary business income is allocated to Jane?b. What is the amount and character of separately stated items allocated to Jane?c. What is Jane's basis in her XYZ Corporation stock at the end of the year?
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.....
Gopher Corporation began the year with a large amount of accumulated earnings and profits and ended the year reporting taxable income of $100,000. Gopher wants to distribute its after-tax earnings to its sole shareholder, Sven Anderson. The dividend would meet the requirements to be a qualified dividend, and Sven is subject to a tax rate of 15 percent on dividend income. What is the amount of the dividend distribution and how much income does Sven realize after taxes? Answer is not complete. Corporate income Corporate tax Dividend distribution to Seven Shareholder tax Total after tax income $100,000 $105,000 x $ 15,000
Angel Ramos received the following income in 2020: Employment income Non-eligible dividends Sale of capital assets: Shares in İMZ Co. (public corporation) Shares in BAR Co. (public corporation) Shares in TRI Inc. to arm's- $ 2,000 $ 7,500 length party (small business corporation) Stamp set Personal electronic system $ 3,000 $ 1,000 Coin set $ 75,000 $ 5,000 ProceedsACB $ 20,000$ 12,000 $ 3,000 $ 10,000 $ 1,500 $ 2,500 $ 4,000 $ 800 Determine Angel's net income for tax purposes for 2020 in accordance with the aggregating formula of Section 3 of the Income Tax Act. (CPP for enhanced contribution = $166.)
Please help me. Thankyou.
Garth is a shareholder in a calendar year S corporation. At the beginning of 2020, his stock basis is $ 20,000, his share of the AAA is $ 4,000, and his share of corporate AEP is $ 12,000. He receives a $17,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital gain and a $( 7,000) operating loss (i.e. a non-separately stated loss) . Determine the ending balance that Garth has in his stock basis, AEP and AAA
Garth is a shareholder in a calendar year S corporation. At the beginning of 2020, his stock basis is $ 20,000, his share of the AAA is $ 4,000, and his share of corporate AEP is $ 12,000. He receives a $17,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital gain and a $( 7,000) operating loss (i.e. a non-separately stated loss) . Determine income, gain, and/or loss that Garth will show on his 2020 1040 return.

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