Discussion Question 13-16 (LO. 4) Tammy and Willy own 40% of the stock of Roadrunner, an S corporation. The other 60% is owned by 99 other shareholders (all are single and unrelated). Tammy and Willy have agreed to a divorce and are in the process of negotiating a property settlement. a. Select "Yes" or "No" to identify the relevant tax issues that Tammy and Willy should address. They should check whether there is a right of first refusal provision on the part of the corporation, or other shareholders, with regard to transferring stock outside the extant shareholder group. • They should check whether the divorce results in the S corporation exceeding the maximum number of shareholders. • They should check whether divorced taxpayers can be shareholders in an S corporation. b. The divorce resulted in the Roadrunner stock being distributed equally to Tammy and Willy. Complete the statements below that outline potential changes to Roadrunner's S status. • If Tammy or Willy retain their shares, Roadrunner its S corporation status. • If Tammy and / or Willy sell their distributed shares to the shareholder limitation will cause Roadrunner to lose its S corporation status.

Discussion Question 13-16 (LO. 4) Tammy and Willy own 40% of the stock of Roadrunner, an S corporation. The other 60% is owned by 99 other shareholders (all are single and unrelated). Tammy and Willy have agreed to a divorce and are in the process of negotiating a property settlement. a. Select "Yes" or "No" to identify the relevant tax issues that Tammy and Willy should address. They should check whether there is a right of first refusal provision on the part of the corporation, or other shareholders, with regard to transferring stock outside the extant shareholder group. • They should check whether the divorce results in the S corporation exceeding the maximum number of shareholders. • They should check whether divorced taxpayers can be shareholders in an S corporation. b. The divorce resulted in the Roadrunner stock being distributed equally to Tammy and Willy. Complete the statements below that outline potential changes to Roadrunner's S status. • If Tammy or Willy retain their shares, Roadrunner its S corporation status. • If Tammy and / or Willy sell their distributed shares to the shareholder limitation will cause Roadrunner to lose its S corporation status.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

You are working with a client, Donna, who has come to you letting you know she has no income tax problems for the year, but she wants to run her situations by you, just in case there might be some unexpected tax liability. In the current year, she has the following information to share with you: 1. Donna's share of the SAT partnership income is $150,000, but none of the income can be distributed because the partnership needs the cash for operations. 2. Donna's social security benefits totaled $10,500, but she loaned the cash received to her nephew. 3. Donna assigned to a creditor the right to collect $1,500 of interest on some bonds she owned. 4. Donna and her husband lived together in California until September, when they separated. Donna has heard through the grapevine that her husband has substantial gambling winnings since they separated. 5. Donna found $50,000 in an airport bar, no one came to claim it while she was waiting for her flight, so she kept the envelope. Please draft an…
Solve both if not don't attempt
QUESTION 51) Kathy and Annise are a married couple who file jointly. In the current year, they have net ordinary income of $10,000 from a partnership interest in which they do not materially participate. They also have a net loss of $30,000 from a rent house in which they actively participate. Their adjusted gross income (AGI) exclusive of these investments is $120,000. What is their AGI after taking into account these investments? $105,000 $125,000 $120,000 $100,000
Dan and Sam are married and will file a joint return. Their modified adjusted gross income is $97,000. Dan has losses of $14,000 from rental activities in which he actively participates. Sam has a $3,000 loss from a limited partnership in which he does not materially participate. They have no passive income for the year. What is the amount of their allowable passive loss? (a) $0 (b) $3,000 (c) $14,000 (d) $17,000
I need some help with F, G please
None
None
N2. part d please
Give me correct answer with explanation.j
A6
Haresh
Lo Lo and Lawrence Lancaster file married Joint Calculate tax liability before tax credits based on the following information: Salary: LoLo $90,000 Lance $70,000 Interest on City of Los Angeles bonds $10,000 Treasury bill interest $20,000 Gift from LoLo's sister Lia $20,000 Dividends $10,000 Lance inherited $40,000 from his great uncle Luther. Long term capital gain $50,000 Sole proprietorship income $100,000 LoLo broke her arm in a fall at Sears and received a legal settlement of $100,000 Lance found a rare coin worth $10,000 on the beach Unemployment compensation $20,000 LOLo's sister Lara repaid a $20,000 loan from 2012 Lance won $5,000 in a football pool at work. LoLo won a bowling tournament and won $5,000 Contribution to Health Savings Account $1,000 Mortgage interest paid $30,000. The $4,000,000 mortgage was signed in 2016 Contribution to Individual Retirement Account. $1,000 Self Employment tax $ 2,000 Real estate tax $10,000 Medical Expenses $30,000 Penalty for early…