Harbor Tech Inc. changed from a C Corporation in 2023 to an S Corporation at the beginning of 2024. For 2024, the company had a built-in gain of $50,000 and accounting income of $55,000. Determine: 1. Any corporate tax that may be imposed on Harbor Tech Inc. 2. The amount to be reported by the sole shareholder.
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- Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s federal tax liability?Tempe Corporation is a calendar - year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $31,500 $ 31,500 Accounts receivable 46, 900 46,900 Inventory 206, 000 269,000 Land 196,000 143,000 Totals $ 480, 400 $ 490, 400 Tempe Corporation's business income for the year was $ 51,500 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $ 302,000. a. What is its built - in gains tax in 2022 ? b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $ 8,800. What is its built - in gains tax in 2022?Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $31,500 $ 31,500 Accounts receivable 46,900 46,900 Inventory 206,000 269,000 Land 196,000 143,000 Totals $ 480, 400 $ 490,400 Tempe Corporation's business income for the year was $51,500 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $ 302,000. a. What is its built-in gains tax in 2022? b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $8,800. What is its built-in gains tax in 2022?
- Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $ 27,000 $ 27,000 Accounts receivable 44,200 44,200 Inventory 188,000 242,000 Land 178,000 134,000 Totals $ 437,200 $ 447,200 Tempe Corporation's business income for the year was $47,000 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $266,000. a. What is its built-in gains tax in 2022? b. Assume the original facts, except that if Tempe Corporation were a C corporation, its taxable income would have been $9,800. What is its built-in gains tax in 2022? c. Assume the original facts, except the land was valued at $168,000 instead of…Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporation became effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Cash Accounts receivable Inventory Land Totals Adjusted Basis $ 23,000 41,800 172,000 41,800 218,000 162,000 126,000 $ 398,800 $ 408,800 FMV $ 23,000 Tempe Corporation's business income for the year was $43,000 (this would have been its taxable income if it were a C corporation). During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $234,000. Built-in gains tax c. Assume the original facts, except the land was valued at $152,000 instead of $126,000. What is Tempe Corporation's built-in gains tax in 2022?Assume that Puritan Corporation operates in an industry for which NOL carryback is allowed. Puritan Corporation reported the following pretax accounting income and taxable income for its first three years of operations: 2023 $ 348,000 2024 (534,000) 2025 765,000 Puritan's tax rate is 25% for all years. Puritan elected a loss carryback. As of December 31, 2024. Puritan was certain that it would recover the full tax benefit of the NOL that remained after the operating loss carryback. What would Puritan report as net income for 2025? Multiple Choice $623.554 $573,750 $143,448 $621,562
- Subjectb: Accountinga. Compute XYZ's taxable income. b. Compute XYZ's income tax liability.Explain when an accounting period starts for corporation tax purposes. 3.2 - Using all the relevant information provided above, calculate Harrogate Chocolate Ltd taxable total profit for the six months ended 31 March 2023. 3.3 - Calculate the corporation tax payable by Harrogate Chocolate Ltd assuming the maximum group relief is surrendered from Suggar Ltd to Harrogate Chocolate Ltd. 3.4 - State the dates on which Harrogate is required to file the CT 600 corporation tax return for the six months period to 31 March 2023 and when any tax payment(s) will be due for the period.
- Bravery Pte Ltd, was incorporated on 16 January 2019 as a manufacturing company with an accounting year end of 31 December. It is wholly owned by XYZ Ltd. It has a chargeable income before exempt income of $1,000,000 for the year ended 31 December 2021. Calculate its net tax payable for Year of Assessment 2022. 1) $120,575 2) $148,750 3) $144,075 4) $152,5751. Compute the income tax liability for Green Corporation that is a regular C Corporation operating on a calendar year basis. In 2018, Green Corporation has a taxable income of $170,000 (a) $59,500 (b) $35,700 (c) $30,800 (d) $68,000 (e) None of the above 2. Wren Corporation (a minority shareholder in Lark Corporation) has made loans to Lark Corporation that become worthless in the current year. (k) Wren Corporation is not permitted a deduction for the loans. (l) The loans result in a nonbusiness bad debt deduction to Wren Corporation. (m) The loans provide Wren Corporation with a business bad debt deduction. (n) Wren claims a capital loss due to the uncollectible loans. (o) None of the above.Requir [The following information applies to the questions displayed below.] Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Cash Accounts receivable Adjusted Basis $ 20,000 40,000 90,000 150,000 FMV $ 20,000 40,000 200,000 175,000 Inventory Land Totals $ 300,000 $ 435,000 In 2023, Virginia Corporation reported business income of $50,000 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? a. During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory sold was $55,000.
