LO.1 Ellie and YiLing are equal owners in Otter Enterprises, a calendar yearbusiness. During the current year, Otter Enterprises has $320,000 of gross incomeand $210,000 of operating expenses. In addition, Otter has a long-term capital gain of$15,000 and makes distributions to Ellie and YiLing of $25,000 each. Discuss theimpact of this information on the taxable income of Otter, Ellie, and YiLing if Otteris:a.D.C.A partnership.An S corporation.AC corporation.

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Answered: LO.1 Ellie and YiLing are equal owners…

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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Orie and Jane, husband and wife, operate a sole proprietorship. They expect their taxable income next year to be $450,000, of which $250,000 is attributed to the sole proprietorship. Orie and Jane are contemplating incorporating their sole proprietorship. (Use the tax rate schedule.) a) Using the married-joint tax brackets and corporate tax rate, find out how much current tax this strategy could save Orie and Jane. b) How much income should be left in the corporation?
Victor and Roberta Sanchez file jointly and had a combined income of $85,700 last year. They contributed $4,200 to their retirement plan and had itemized deductions of $19,420. Their combined income tax withheld last year amounted to $9,555. Are they entitled to a refund or do they owe additional taxes? O owe additional taxes O entitled to a refund How much (in $)? $ Need Help? Read It Watch It Master It
An investor has a taxable income of $125997. He has an investment property which earns $21780 in rental income and incurs $35782 in expenses, including maintenance, local council rates, land tax and interest on a mortgage loan. What is his total income tax payable (excluding the 2% Medicare surcharge)? a. $23865 b. $26865 c. $24865 d. $27865
18. Rex and Dena are married and have two children, Michelle (age seven) and Nancy (age five). During 2022, Rex earned a salary of $27,500, received interest income of $300, and filed a joint income tax return with Dena. Dena had $0 gross income. Their earned income credit for the year is: a.$0. b.$5,840. c.$5,903. d.$6,164.
1. Peter and Renee, who file married filing jointly, recelved $30,200 of Social Security benefits this year ($12,000 for Peter, $18,200 for Renee). They also received $5.000 of interest from jointly owned City of Milwaukee bonds and $15,000 of dividend income from stocks owned by Peter. Their final gross income is: a. $15,000. b. $16,550. C. $21,550. d. $30,100. e. none of the above.
hd.1
2) Using the same information above, "David and Dana file a joint return. David earned $35,000 during the year before losing his job. Dana received Social Security benefits of $4,800" What is the taxable portion of the Social Security benefits if David earned $46,000? Begin by computing the provisional income.
a. Bruno and Bridget are married and file a joint return, with earned income of $48,000 and $12,000, respectively. Their combined AGI is $58,000. They have two children, ages 10 and 12, and employ a live-in nanny at an annual cost Refer to the information provided and compute the child and dependent care tax credit. Child and dependent Qualifying expenses eligible Applicable percentage care tax credit Requirement = Print % = For each of the independent situations, determine the amount of the child and dependent care tax credit. (Assume that both taxpayers are employed and the year is 2022.) Done X Independent Situations a. Bruno and Bridget are married and file a joint return, with earned income of $48,000 and $12,000, respectively. Their combined AGI is $58,000. They have two children, ages 10 and 12, and employ a live-in nanny at an annual cost of $8,000. b. Assume the same facts as in Part a, except that Bruno and Bridget employ Bridget's mother, who is not their dependent, as the…
Subject: accounting
VI.7
Compute for the taxable income in each of the following cases. Show your computation. Thank you in advance.
Whitney received $77,000 of taxable income in 2022. - she files a joint tax return with her spouse. Together their taxable income is $77,000. What is the income tax liability?

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