Los Pollos Hermanos, LLC is owned equally by WW Corp (March 31st taxable year) and Gustavo Corp (April 30th taxable year). What is the required taxable year of Los Pollos Hermanos?
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Los Pollos Hermanos, LLC is owned equally by WW Corp (March 31st taxable year) and Gustavo Corp (April 30th taxable year). What is the required taxable year of Los Pollos Hermanos?
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- Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2020 and $90,000 for 2021. a. What is the amount of income from the LLC that Burgundy must report for its tax year ending April 30, 2021? b. What is the amount of income from the LLC that Violet must report for her tax year ending December 31, 2021?Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy, Inc.) is $80,000 for 2020 and $90,000 for 2021. a. Now assume that Burgundy, Inc.’s annual guaranteed payment is increased to $120,000 starting on January 1, 2021, and the LLC’s taxable income for 2020 and 2021 (after deducting Burgundy’s guaranteed payment) is the same (i.e., $80,000 and $90,000, respectively). What is the amount of income from the LLC that Burgundy, Inc., must report for its tax year ending April 30, 2021?Jada Corp owns a 20 percent interest in JV, LLC. Jada’s taxable year ends September 30th. The remaining 80 percent of JV is owned by 20 different partners, each of whom owns a 4 percent interest. Of those 20 partners, 10 have a taxable year that ends December 31. The other 10 have a taxable year that ends July 31st. What is JV, LLC’s required taxable year?
- Gaston Corporation distributes § 1245 property as a dividend to its shareholders. The property's fair market value is $813,600, and the adjusted basis is $772,920. In addition, the amount of the recapture potential is $77,292. What is the amount and character of Gaston's gain or loss? As result of the distribution, Gaston recognizes ofLake Life, Inc., a C corporation, owns a single asset with a basis of $250,000 and a fair market value of $500,000. Lake Life elects S corporation status. Lake Life holds a positive E & P balance. The entity elects S corporation status for 2019 and then sells the asset. What are the corporate-level built-in gains taxes that must be paid by Lake Life? Answer: $____________C Corporation converts to S Corporation when the fair market value of its assets was $100,000 and its basis of those assets was $60,000. Three years later, S Corporation sells those assets for $120,000. What amount of built in gain is subject to S corporation tax at the date of sale?
- Alaska Inc. is an accrual-basis C corporation that was incorporated on January 1, Year 1. At the end of Year 2, the corporation is considering converting to an S corporation. Alaska is required to determine its accumulated earnings and profits prior to conversion. The company has already calculated book net income, taxable income, and prior-year accumulated earnings and profits, and is now attempting to calculate the company's current earnings and profits. In Year 4, Alaska is still a C corporation. Accumulated earnings and profits at the end of Year 3 were $61,000. Current earnings and profits for Year 4 are $24,000. During Year 4, Alaska made two distributions on the dates indicated in column A of the table below. Allocate the distributions indicated in column B among columns C, D, and E. Round all answers to the nearest dollar. 1 2 3 4 A Distribution Dates 3/31/Yr 4 9/30/Yr 4 Totals B Distribution Amounts $58,000 $33,000 $91,000 с Current E&P 123 123 $0 D Accumulated E&P at 12/31/Yr…Broken Rock LLC was recently formed with the following members: Name Tax Year-End Capital/ Profits % George Allen December 31 33.33% Elanax Corporation June 30 33.33% Elizabeth Cheam December 31 33.34% What is the required taxable year-end for Broken Rock LLC?Check my work Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy) is $80,000 for 2020 and $90,000 for 2021. How much income from BV must Burgundy report for its tax year ending April 30, 2021? Burgundy receives a guaranteed payment of $100,000 plus 50% of $80,000 = $40,000 Burgundy’s total income is $140,000 How much income from BV must Violet report for her tax year ending December 31, 2021? Violet receives 50% of $90,000, BV’s taxable income after guaranteed payment to Burgundy, 50% of $90,000= $45,000
- The Parent consolidated group reports the following results for the 2021 tax year. Entity Parent Income or Loss $78,600 Sub1 (7,860) Sub2 Sub3 31,440 15,720 Do not round any division in your computations. If required, round your answers to nearest whole dollar. If an amount is zero, enter "0". a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is $ the total consolidated tax liability is $ b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? Entity Income or Loss Parent $ Sub1 $ Sub2 $ Sub3 $ HA andWhich of the following increases the Accumulated Adjustments Account (AAA) of an S Corporation? Cost Of Goods Sold. Nontaxable Life Insurance Proceeds. Tax-Exempt Interest Income. Section 1250 Gains. QUESTION 16 Fannie has been the sole (one hundred percent (100% ) ) shareholder of Beola Corporation, a calendar year S Corporation, since 1981. At end of 2024, 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)- $19,800; Previously Taxed Income (PTI) - $7,300; Accumulated Earnings And Profits (AEP) - $3,600. How is Fannie taxed on the distribution? A $-0- Taxable Dividend and a $-0- Long-Term Capital Gain. 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. A $3,600 Taxable Dividend.Calculate taxable income?
