I need answer of this question Jasper Corporation, a closely held corporation, generated$150,000 of income from operations during the year. It alsoreceived passive losses of $200,000 and interest of $40,000(Jasper Corporation was fully at risk for the amount of loss).What is the corporation's taxable income?a) $40,000b) $30,000c) $120,000d) $170,000

The income on which income tax will be levied upon is called taxable income. An individual's taxable…

Answered: Jasper Corporation, a closely held…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 7DQ

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Burke Enterprises Ltd. had net business income of $170,000, interest income of $28,500 and dividend income of $20,000. The corporation had an empty, unused warehouse which it rented during the current taxation year. The warehouse lease resulted in net rental losses of $32,300 during this period. As the result of dispositions of capital property, the corporation had taxable capital gains of $57,400 and allowable capital losses of $59,200. Required: (1) Determine Burke Enterprises Ltd.'s minimum Net Income For Tax Purposes for the current year and enter your answer as a whole number (no decimals, commas or dollar signs) in the box below. (2) On your exam working paper, show your calculation of net income for tax purposes for the corporation in accordance with Section 3 of the Income Tax Act. Show all of your work for full marks. (3) On your exam working paper, indicate the amount and type of any loss carry overs that are available at the end of the year. Show all of your calculations.
Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets: Accumulated Depreciation $ 54,000 n/a Sales Price Building Sparkle Corporation stock $ 703,000 138,000 Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $820,000. What are Shimmer's taxable income and tax liability for the year? Asset Description Taxable income Tax liability S Amount 820,000 172.200 Cost $ 657,000 238,000
Abbot Corporation reported a net operating loss of $400,000 in 20X3, which the corporation elected to carryforward to 20X4. Included in the computation of the loss was regular depreciation of $100,000 (E&P depreciation is $40,000), first year expensing under §179 of $50,000, and a dividends received deduction of $10,000. The corporation's current earnings and profits for 20X3 would be: A. $520,000 B. $510,000 C. $340,000 D. $420,000
Citrus Corporation is a calendar year 5 corporation with the following current year information: Operating loss Liabilities: Notes payable, Big Apple Bank 570,000 Notes payable, Grapefruit (individual) 380,000 On January 1 Grapefruit bought 60% of Citrus Corporation for $855,000. She then loaned Citrus Corporation $380,000 (the amount above under labilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply. $1.425.000 $(2,280,000) $1,235,000 O 51.520,000 $1083.000
Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets: Accumulated Depreciation $ 43,000 n/a Asset Building Sparkle Corporation stock Description Taxable income Tax liability Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $813,000 What are Shimmer's taxable income and tax liability for the year? L Sales Price $713,000 200,000 Amount Cost $ 697,000 259,000
Li Corporation reported pretax book income of $660,000. Tax depreciation exceeded book depreciation by $412, 000. Li's beginning book (tax) basis in its fixed assets was $1,960,000 ($1,748, 000) and its ending book (tax) basis is $1,860,000 ($1, 272, 000). In addition, the company received $360, 000 of tax-exempt municipal bond interest. The company's prior - year tax return showed taxable income of $49,000. Assuming a tax rate of 21 percent, compute the company's deferred income tax expense or benefit.
This year, PRS Corporation generated $300,000 income from the performance ofconsulting services for its clients. It sold two assets during the year, recognizing a$36,000 gain on the first sale and a $49,000 loss on the second sale. Compute PRS’staxable income assuming that:Required:a.Both the gain and the loss were capital.b. Both the gain and the loss were ordinary.c. The gain was ordinary, and the loss was capital.d. The gain was capital, and the loss was ordinary.
domectic
Citrus Corporation is a calendar year S corporation with the following current year information: Operating loss Liabilities: Notes payable, Big Apple Bank 60,000 Notes payable, Grapefruit (individual) 40,000 On January 1 Grapefruit bought 60% of Citrus Corporation for $90,000. She then loaned Citrus Corporation $40,000 (the amount above under liabilities). How much of the operating loss may Grapefruit deduct currently? Assume the excess business loss limitation does not apply. O $114,000 $(240,000) O $160,000 O $130,000 $150,000
Swifty Corporation has income from continuing operations of $319,000 for the year ended December 31, 2022. It also has the following items (before considering income taxes). 1. An unrealized loss of $58,800 on available-for-sale securities. 2. A gain of $25,300 on the discontinuance of a division (comprised of a $8,200 loss from operations and a $33,500 gain on disposal). Assume all items are subject to income taxes at a 20% tax rate.Prepare a partial income statement, beginning with income from continuing operations, and a statement of comprehensive income. SWIFTY CORPORATIONPartial Income Statementchoose the accounting period select an income statement item $enter a dollar amount select an income statement item select an income statement item…
Tiger Corporation reported taxable income of $500,000 from operations this year. The company paid federal income taxes of $210,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Mike Fairway. The land's fair market value was $75,000, and its tax and E&P basis to Tiger was $125,000. Mike assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at the beginning of the year. d. What amount of dividend income does Mike report as a result of the distribution? Dividend income
Tiger Corporation reported taxable income of $500,000 from operations this year. The company paid federal income taxes of $210,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Mike Fairway. The land's fair market value was $75,000, and its tax and E&P basis to Tiger was $125,000. Mike assumed a mortgage attached to the land of $15,000. The company had accumulated E&P of $750,000 at the beginning of the year. e. What is Mike's tax basis in the land he received from Tiger? Tax basis

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