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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- 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 of. Mang Juan, a sole proprietor, died on July 31, 2020. The following summarizes the taxable income of the business left by Mang Juan: Period Taxable Income P560,000 January 1 to July 31, 2020 August 1 to December 31, 2020 610,000 Total P1,170,000 Which of the following is a correct statement? a. The total taxable income of P1,170,000 shall be reported by the estate of Mang Juan. b. Mang Juan's 2020 income tax return shall report the total taxable income of P1,170,000. c. Mang Juan's 2020 income tax return shall report the taxable income of P560,000 while the estate of Mang Juan shall report a taxable income of P610,000 for the year 2020. d. Mang Juan's 2020 income tax return shall report the taxable income of P560,000 while the heirs of Mang Juan shall report a taxable income of P610,000 for the year 2020.
- Lake 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?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). b. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis).
- Which 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.Josie Inc is an S Corporation and Josie owns 100 % of its stock. On April 1 2019 Josie sold 25 % of her shares to the LJ General Partnership. ( April 1 st is the 91 st day of Josie , Inc's taxable year. ) As a result of this transaction, Josie Inc's S Corp election is terminated. In 2019 , Josie Inc generated $730,000 of taxable income. How is the 2019 taxable income reported on Josie Inc's 2019 tax return(s) ?Josie Inc is an S Corporation and Josie owns 100 % of its stock. On April 1 2019 Josie sold 25 % of her shares to the LJ General Partnership. ( April 1 st is the 91 st day of Josie Inc's taxable year. ) As a result of this transaction, Josie Inc's S Corp election is terminated. In 2019 , Josie Inc generated $730,000 of taxable income. How is the 2019 taxable income reported on Josie Inc's 2019 tax return(s) ?
- Jokan contributes a nondepreciable asset to the Mahall LLC in exchange for a one-fourth (25%) interest in the LLC's capital and profits and a 30% interest in the LLC's losses. The asset has an adjusted tax basis to Jokan and the LLC of $117,500 and a fair market value and § 704(b) "book" basis on the contribution date of $211,500. The asset is encumbered by a nonrecourse note of $70,500 that has not been guaranteed by any of the LLC members. How much of the nonrecourse debt is allocated to Jokan? What is the amount of Jokan's basis in the LLC interest following the contribution?Globe Company, a real estate developer, is owned by five founding shareholders.On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020.On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000.However, the fair values is P1,800,000 on December 31, 2019 and P1,900,000 and January 31, 2020. 1. What amount should be recorded as dividend payable on December 1, 2019? 2. What amount should be reported as dividend payable on December 31, 2019?Global Company, a real estate developer, is owned by five founding sharcholders. On December 1, 2019, the entity declared a property dividend of a "one-bedroom flat" for each shareholder. The property dividend is payable on January 31, 2020. On December 1, 2019, the carrying amount of a one-bedroom flat is P1,000,000 and the fair value is P1,500,000. However, the fair value is P1,800,000 on December 31, 2019 and P1,900,000 on January 31, 2020. How much should be charged to retained earnings during 2019 in relation to the property dividends?
