Exercise 17-24 (Algorithmic) (LO. 2)Crane and Loon corporations, two unrelated C corporations, have the following transactions for the current year.Gross income from operationsExpenses from operationsDividends received from domestic corporations (15% ownership)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.CraneLoon$293,500 $469,600410,900 493,080176,100 352,200

The board of directors of a corporation makes the decision on dividend payments to shareholders. It…

Answered: Exercise 17-24 (Algorithmic) (LO. 2)…

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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WFO Corporation has gross receipts according to the following schedule: $ 25.00 million $ 27.00 million million $29.00 $ 29.50 million $ 30.00 million $31.00 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Multiple Choice O O Year 3 Year 4 Year 5 Year 6 None of the choices is correct.
Exercise 19-22 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $188,000. Current E & P for the year is $564,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $300,800 ($150,400 to Elizabeth and $150,400 to Jonathan) on April 30 and a total of $526,400 ($263,200 to Jonathan and $263,200 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "O". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $300,800 December 31 distribution…
Crane and Loon Corporations, two unrelated C corporations, have the following transactions for the current year. Crane Loon Gross income from operations $283,500 $453,600 Expenses from operations 396,900 476,280 Dividends received from domestic corporations (15% ownership) 170,100 340,200 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.
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 Click here to view the dividend received deduction table. Question Content Area a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year? Swallow's taxable income after deducting the dividends received deduction is $fill in the blank fd6fd0f8303e049_2 . Feedback Area Feedback The purpose of the dividends received deduction is to mitigate multiple taxation of corporate income. Without the deduction, income paid to a corporation in the form of a dividend would be taxed to the recipient corporation with no corresponding deduction to the distributing corporation. Later, when the recipient corporation paid the income to its shareholders, the income would again be subject to taxation with no corresponding…
Hw.67. Determine the amount of the dividends received deduction in each of the following instances. In all cases, the net income figure includes the full dividend. Use Dividends deduction table. Required: Dividend of $14,000 from a 45% owned corporation; taxable income before DRD of $62,000. Dividend of $21,400 from a 15% owned corporation; taxable income before DRD of $83,000. Dividend of $15,500 from a 60% owned corporation; taxable income before DRD of $8,500. Dividend of $4,750 from a 10% owned corporation; taxable income before DRD of $3,910.
10 The following information has been extracted from the consolidated financial statements of P for the year ended 31 December 2017 The group has neither purchased nor disposed of any investment during this period. Group statement of profit or loss $ 000 Group operating profit 1,468 Share of associate's profit after tax 136 1,604 Tax on profit on ordinary activities: Income taxes: group (648) Profit on ordinary activities after tax 956 Group statement of financial position at 31 December 2017 2016 $00 $ 000 Investments in associates Share of net assets 932 912 Required What figure should appear in the group statement of cash flows for the year to 31 December 2017 for the associate? (a) (b) Under which heading would you expect this figure to appear in the group statement of cash flows?
Exercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $114,000. Current E & P for the year is $342,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $182,400 ($91,200 to Elizabeth and $91,200 to Jonathan) on April 30 and a total of $319,200 ($159,600 to Jonathan and $159,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $182,400 From Current E & P From…
17. 2022 Corp Z Cash Method Taxpayer – (Corp. Aggregate Receipts < $27 Mil.) 100% Owned by Shareholder A Business Income - 1200000 Business Expenses - 160000 NYS Bond Interest - 2000 Dividend received from 75 % owned Corporation - 8000 Reasonable Compensation - 5500000 Compensation of Family Members Not Active in the Company - 150000 Capital Loss – (5000) Interest Expense paid to Bank - 250000 §179 Depreciation Tractor - 25000 Bonus Depreciation Heavy Truck - 50000 Questions: a. What is taxable income? _______________ Show calculations.
Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $11,560. Marcus is Johnstone's sole shareholder, and he has a stock basis of $46,000 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (S Corporation) $ 174,000 ( 41,000) ( 66,000) ( 56,500) (10,000) (4,600) 12,540 Sales r evenue Cost of goods sold Salary to owners Employee wages Depreciation expense Miscellaneous expenses Interest income Overall net income $ 8,440 What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) a. Johnstone distributed $7,200 to Marcus in year 2. Accumulated adjustments account Dividend income
Required information (The following information applies to the questions displayed below.) Marathon Inc. (a Ccorporation) reported $1700,000 of taxable income in the current year. During the year, distributed $170,000 as dividends to Its shareholders as follows: • $8,500 to Guy, a 5 percent individual shareholder. $25,500 to Little Rock Corp., a 15 percent shareholder (C corporation). • $136,000 to other shareholders. d. Complete Form 1120 Schedule C for Little Rock Corp. to reflect its dividends received deduction (use the most recent Form 1120 Schedule
Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $11,560. Marcus is Johnstone's sole shareholder, and he has a stock basis of $46,000 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (S Corporation) $ 174,000 ( 41,000) ( 66,000) ( 56,500) (10,000) ( 4,600) 12,540 $ 8,440 Sales r evenue Cost of goods sold Salary to owners Employee wages Depreciation expense Miscellaneous expenses Interest income Overall net income What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) b. Johnstone distributed $11,200 to Marcus in year 2. Accumulated adjustments account $ Dividend income
ESPAÑOL INGLÉS FRANCÉS Common shareholders are considered the residual owners of a corporation. The term residual means that the common stockholders to. They are entitled to receive dividends every year in which the company generates a profit. b. they assume the ultimate risks and uncertainties and receive the benefits of ownership in a corporation. С. are entitled to specific assets. Enviar comentarios MacBook Air

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