Nicole and Mohammad (married taxpayers filing jointly) are equal owners in an S corporation. The company reported sales revenue of$350,000 and expenses of $210,000. The corporation also earned $15,000 in taxable interest and dividend income and had $9,000investment interest expense.Required:How are these amounts reported for tax purposes in the following schedules?AmountSchedule ASchedule BSchedule E

Schedule E:Revenue from business: ($15,000 - $9,000) + ($350,000 - $210,000) = $146,000S…

Answered: Nicole and Mohammad (married taxpayers…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 60P

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Nicole and Mohammad (married taxpayers filing jointly) are equal owners in an S corporation. The company reported sales revenue of $410,000 and expenses of $287,000. The corporation also earned $21,000 in taxable interest and dividend income and had $13,650 investment interest expense. Required: How are these amounts reported for tax purposes in the following schedules? > Answer is complete but not entirely correct. Schedule A Schedule B Schedule E $ $ $ Amount 0X 21,000✔ 13,650 x
Provide correct answer for this general accounting question
The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. (attached image) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?
Subject: accounting
Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65%, and Terrell owns 35%. The business has the following results in the current year: Revenue Business expenses Charitable contributions $ 1,700,000 1,105,000 40,500 Short-term capital losses 3,780 5,400 Long-term capital gains Required: How do Dominique and Terrell report these items for tax purposes? Revenues Expenses ces Ordinary income Charitable contributions S/T capital losses L/T capital gains Total Dominique (65%) Terrell (35%) Reporting Schedule
Q1.
a. Compute XYZ's taxable income. b. Compute XYZ's income tax liability.
Requirements a. What is Sigma Corporation's income tax liability assuming its taxable income is (a) $82,000, (b) $123,000, and (c) $55 million. b. How would your answers change if Sigma were a personal service corporation? Requirement a. (a) What is Sigma Corporation's income tax liability assuming its taxable income is $82,000. ma Corporation's income tax liability = Requirement a. (b) What is Sigma Corporation's income tax liability assuming its taxable income is $123,000. pted Sigma Corporation's income tax liability Requirement a. (c) What is Sigma Corporation's income tax liability assuming its taxable income is $55 million. (Enter your answer in dollars, not millions.) = Sigma Corporation's income tax liability: = Requirement b. How would your answers change if Sigma were a personal service corporation? (a) Assume its taxable income is $82,000. Sigma Corporation's income tax liability as a personal service corporation : = (b) Assume its taxable income is $123,000.
The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. a. Compute Kitsch’s nonseparately stated income or loss for the tax year. b. What would be the share of this year’s nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders? c. What is James Billings’s share of tax-exempt interest income, if any? Is the income taxable to him this year?
The Parent consolidated group reports the following results for the tax year. Entity Income or Loss Parent $180,000 Sub1 ($19,000) Sub2 ($38,000) Sub3 $62,000 If an amount is zero, enter "0". If required, round any division to two decimal places and use rounded amounts in subsequent computations. Round your final answers to the nearest dollar. a. Assuming a 21% tax rate, what is the group's consolidated taxable income and consolidated tax liability? The consolidated taxable income is $ 185,000 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? Parent $___________ Sub1 $__________ Sub2 $0 Sub3 $_________ What is the Parent, Sub 1, and Sub 3?
Discussion Question: The average tax rate is calculated by dividing the total tax payable by the taxable income and it represents the percentage of the income that goes to pay taxes. Consider the following data for two corporations. ABC and XYZ Inc.: Particulars ABC Inc. (Rs.) XYZ Inc. (Rs.) Gross Profit 2,600,000 2.600,000 Administrative Expenses 800,000 800,000 Depreciation Other Income Taxable Income 200,000 500,000 900,000 900,000 2,500,000 2,200,000 Requirements: i. Calculate the average tax rate for both companies. ii. Briefly describe how the above calculations support the notion that depreciation acts as a tax shield. Your answers must be presented in the following format:
Determine the amount of final withholding tax (include the ordinary income) assuming the individual is classified as NRA-NETB.

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