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erie Co. (CC) has the following for 20x5: e income gate investment income $450,000 60,000 nd income Portfolio dividends (eligible) Dividends from Beautiful Bagels Inc. (non-eligible) nt eligible for the small business deduction 8,000 25,000 275,000

erie Co. (CC) has the following for 20x5: e income gate investment income $450,000 60,000 nd income Portfolio dividends (eligible) Dividends from Beautiful Bagels Inc. (non-eligible) nt eligible for the small business deduction 8,000 25,000 275,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 2 The Cupcakerie Co. (CC) has the following for 20x5: $450,000 60,000 Taxable income Aggregate investment income Dividend income Portfolio dividends (eligible) Dividends from Beautiful Bagels Inc. (non-eligible) Amount eligible for the small business deduction Ordinary Part I tax Additional refundable tax 8,000 25,000 275,000 58,800 6,400 5,000 36,000 Opening eligible RDTOH account Opening non-eligible RDTOH account Prior year dividend refund - eligible Prior year dividend refund - non-eligible Current year eligible dividend paid Current year non-eligible dividend paid 15,000 30,000 50,000 CC owns 90% of Beautiful Bagels. Upon paying this year's dividend, Beautiful Bagels enjoyed a dividend refund of $6,000. a) Calculate CC's Part IV tax. b) Calculate the ending balance in CC's RDTOH accounts.
Transcribed Image Text:Question 2 The Cupcakerie Co. (CC) has the following for 20x5: $450,000 60,000 Taxable income Aggregate investment income Dividend income Portfolio dividends (eligible) Dividends from Beautiful Bagels Inc. (non-eligible) Amount eligible for the small business deduction Ordinary Part I tax Additional refundable tax 8,000 25,000 275,000 58,800 6,400 5,000 36,000 Opening eligible RDTOH account Opening non-eligible RDTOH account Prior year dividend refund - eligible Prior year dividend refund - non-eligible Current year eligible dividend paid Current year non-eligible dividend paid 15,000 30,000 50,000 CC owns 90% of Beautiful Bagels. Upon paying this year's dividend, Beautiful Bagels enjoyed a dividend refund of $6,000. a) Calculate CC's Part IV tax. b) Calculate the ending balance in CC's RDTOH accounts.
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