Motbhai Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. Inyear 1, Julio and Milania each received distributions of $15,000 from Falcons Corporation.Falcons Corporation (an S Corporation)Income StatementDecember 31, Year 1 and Year 2Sales revenueCost of goods soldSalary to owners Julio and MilaniaEmployee wagesDepreciation expenseSection 179 expenseInterest income (related to business income)Municipal bond incomeGovernment finesOverall net incomeDistributionsOrdinary IncomeSection 179 expenseInterest incomeMunicipal bond incomeGovernment finesDistributions> Answer is not complete.XAmount$ 175,00030,00012,000 X1,5002,00030,000a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above?Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis).X $$Allocated toJulio$$$Year 1$ 300,000(40,000)(40,000)87,50015,000$ 158,500$ 30,000(25,000)(20,000)(30,000)12,0001,5000Allocated toMilania$6,000 X750200 × $15,000 $Year 2$ 430,000(60,000)(80,000)(50,000)87,50015,0006,00075020015,000(40,000)(50,000)22,5004,000(2,000)$ 174,500$ 50,000

Depreciation is the decrement in the value of tangible assets by the wear and tear during the…

Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $15,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 300,000 (40,000) (40,000) (25,000) (20,000) (30,000) 12,000 1,500 0 $ 158,500 $ 30,000 Year 2 $ 430,000 (60,000) (80,000) (50,000) (40,000) (50,000) 22,500 4,000 (2,000) $ 174,500 $ 50,000 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis).

Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $15,000 from Falcons Corporation. Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Year 1 $ 300,000 (40,000) (40,000) (25,000) (20,000) (30,000) 12,000 1,500 0 $ 158,500 $ 30,000 Year 2 $ 430,000 (60,000) (80,000) (50,000) (40,000) (50,000) 22,500 4,000 (2,000) $ 174,500 $ 50,000 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis).

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 35P

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Nn.169. Subject : - Accounting
Subject - account Please help me. Thankyou.
Required Information [The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $12,000 from Falcons Corporation. Sales revenue Cost of goods sold Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Interest income (related to business income) Municipal bond income Government fines Overall net income Distributions Ordinary Income Amount Year 1 $ 335,000 (42,000) (40,000) (30,000) (20,000) (30,000) 12,000 1,808 Allocated to Julio 0 $ 186,800 $ 24,000 a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $240,000 of qualified property (unadjusted basis). Year 2 $ 465,000…
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Vikram Bhai
Required information [The following information applies to the questions displayed below.] Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income Year 1 $ 175,000 (60,000) (40,000) (15,000) (10,000) (7,500) 2,000 500 Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 45,000 $ 134,500 a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years.
You are provided with the following amounts for Denise Tran for the current year: * Net employment income (ITA 5 to 8) = $40,000 • Interest income (ITA 12) = $6,100 Taxable amount of dividends (ITA 12) = $2,640 • Taxable capital gains (ITA 38 to 55) = $5,500 • Allowable capital losses (ITA 38 to 55) = $6,500 • Interest expense (bank loan for investment purposes) = $5,500 Investment counsel fees = $300 RRSP deduction (allowed pursuant to ITA 60) = $12,000 Based on the above, the "net property income" reported by Denise Tran pursuant to ITA 3(a) for the current year is: - Choose the correct answer. OA. $8,740 OB. $38,460 O C. $7,740 OD. $2,940
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1. John reports the following business transactions: Gross sales - P850,000 Sales discounts - 25,000 Cost of sales - 250,000 Operating expenses - 190,000 Interest income on bank deposits- BPI - 10,000 John also earned a total compensation of P410.020, from a part-time employment of which, P105,000 is excluded from taxation. Compute the taxable income of John which is subject to regular income tax: a. P680,000 b. P690,000 c. P705,000 d. P870,000 2. The negligence of AC, driver of a certain bus company, resulted in the death of JP's wife, physical injuries to JP that prevented him from working for a month, and the total wreck of JP's brand new car which he had bought for P400.000. In the action for damages filed by JP against the bus company, the court awarded the following: • P30,000 for JP's injuries consisting mainly in the loss of his right hand; • P45,000 for JP's loss of one month salary: • P25,000 for the death of his wife: • P100,000 moral damages on account of the…
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! Required information [The following information applies to the questions displayed below.] Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses Interest income (unrelated to business) Qualified dividend income Overall net income Ordinary income Qualified business income Interest income Dividend income Allocated wages Unadjusted basis of qualified property a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years. > Answer is not complete. Jack Year 1 $ 11,125 $ $ 11,125 X $ $ $ $ Year 1 $ 175,000 (60,000) (40,000) (15,000) (10,000) (7,500) 2,000 500 $ 45,000 125…