Fannie has been the sole (one hundred percent (100%)) shareholder of Beola Corporation, a calendar year S Corporation, since 1981. At the end of 2023, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA)-$18,900; Previously Taxed Income (PTI) - $8,200; Accumulated Earnings And Profits (AEP)- $3,600. How is Fannie taxed on the distribution? OAS-0-Taxable Dividend and a $-0-Long-Term Capital Gain. A $3,600 Taxable Dividend. O A $3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain. A $3,600 Taxable Dividend and a $4,000 Long-Term Capital Gain.

Fannie has been the sole (one hundred percent (100%)) shareholder of Beola Corporation, a calendar year S Corporation, since 1981. At the end of 2023, Fannie's basis in her stock is $36,800 and she receives a distribution of $44,400 from Beola Corporation. Corporate level accounts of Beola Corporation are as follow: Accumulated Adjustments Account (AAA)-$18,900; Previously Taxed Income (PTI) - $8,200; Accumulated Earnings And Profits (AEP)- $3,600. How is Fannie taxed on the distribution? OAS-0-Taxable Dividend and a $-0-Long-Term Capital Gain. A $3,600 Taxable Dividend. O A $3,600 Taxable Dividend and a $9,700 Long-Term Capital Gain. A $3,600 Taxable Dividend and a $4,000 Long-Term Capital Gain.

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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This year, the shareholders in Sunflower Company can choose between receiving an additional 1,000 shares of stock or cash of $1000. Sunflower's shareholders will be taxed on the distribution if Sunflower has sufficient E&P. True Or False
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Question-1 Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does not do any work for Guardian Corporation. Guardian Corporation reported $350,000 of business income for the year (2022). Before considering her business income allocation from Guardian Corporation and the self-employment tax deduction (if any), Kiyara's adjusted gross income was $300,000 (all employee salary). Kiyara has $42,500 in itemized deductions. Answer the following questions for Kiyara. A). Assuming the income allocated to Kiyara is qualified business income, what is Kiyara's deduction for qualified business income? Assume Kiyara's share of wages paid by Guardian Corporation is $62,500 and her share in the unadjusted basis of qualified property used by Guardian was $225,000.
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