oblem 19-34 (Algorithmic) (LO. 1, 4) the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $110,000. Blue's current E & P is 56,000, and at the end of the year, it distributes $220,000 ($110,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is 15,400; Jon's stock basis is $61,600. ow is the distribution treated for tax purposes? an amount is zero, enter "0". poja has the following: vidend income: $ apital gain: $ cock basis after distribution: n has the following: vidend income: apital gain: $ tock basis after distribution: $

oblem 19-34 (Algorithmic) (LO. 1, 4) the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $110,000. Blue's current E & P is 56,000, and at the end of the year, it distributes $220,000 ($110,000 each) to its equal shareholders, Pooja and Jon. Pooja's stock basis is 15,400; Jon's stock basis is $61,600. ow is the distribution treated for tax purposes? an amount is zero, enter "0". poja has the following: vidend income: $ apital gain: $ cock basis after distribution: n has the following: vidend income: apital gain: $ tock basis after distribution: $

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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Hernando is a shareholder in a S corporation. At the beginning of the year, he purchased 1500 shares of the corporation for $35000. He then received a schedule K-1 for the same year reporting his share of the ordinary business income $10000. The only other item reported on schedule k-1 was $2000 cash distribution. What is Hernando year-end adbjusted basis
Exercise 19-30 (Algorithmic) (LO. 8) During the current year, Gnatcatcher, Inc., (E & P of $1,300,000) distributed $575,000 each to Brandi and Yuen in redemption of some of their Gnatcatcher stock. The two shareholders acquired their shares five years ago. Each shareholder is in the 32% tax bracket, and each had a $143,750 basis in the redeemed stock. Assume taxpayers in the 32% tax bracket are subject to the long-term capital gains and qualified dividends tax rate of 15%. If required, round your answers to nearest dollar. a. Assume that the distribution to Brandi is a qualifying stock redemption. The distribution is taxed as a sale or exchange Feedback Check My Work and Brandi's tax liability is $ b. Assume that the distribution to Yuen is a nonqualified stock redemption. The distribution is taxed a dividend and Yuen's tax liability is $
Lone Star Company is a calendar-year corporation, and this year Lone Star reported $122,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star’s accumulated E&P was $14,640. At the beginning of the year, Lone Star’s sole shareholder was Matt McCon. Lone Star declared $36,600 in cash distributions on each of the following dates: March 31, June 30, September 30, and December 31. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $51,000. How much dividend income will Matt recognize this year? Dividend recognized: c. If Matt’s basis in his Lone Star shares was $8,100 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Capital gain recognized on the sale and distribution:
Exercise 5-16 (Algorithmic) (LO. 3) On January 1 of the current year, Rhondell Corporation has accumulated E & P of $114,000. Current E & P for the year is $342,000, earned evenly throughout the year. Elizabeth and Jonathan are sole equal shareholders of Rhondell from January 1 to April 30. On May 1, Elizabeth sells all of her stock to Marshall. Rhondell makes two distributions to shareholders during the year: a total of $182,400 ($91,200 to Elizabeth and $91,200 to Jonathan) on April 30 and a total of $319,200 ($159,600 to Jonathan and $159,600 Marshall) on December 31. Determine the allocation of the distributions by completing the table below. Assume that the shareholders have sufficient basis in their stock for any amount that is treated as return of capital. If an amount is zero, enter "0". If required, round any division to two decimal places and use in subsequent computations. Round final answers to the nearest dollar. April 30 distribution of $182,400 From Current E & P From…
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Mary Company’s pretax accounting income is $66,000 and has the following information: Compensation expense for incentive stock options is $19,000. Interest on municipal bonds is $11,000. Unrealized gain on AFS securities is $1500. Taxable income is $66,000 + $11,000 + $19,000 - $1500. $66,000 + $11,000 - $19,000 + $1500. $66,000 - $11,000 + $19,000. $66,000 - $11,000 - $19,000 .
Marshall Mathers , a non-resident alien not engaged in trade or business, owns 1,000,000 shares in MWC, Inc. In 2021, MWC declared 20% stock dividends, during which the fair market value of the shares is P1/share. How much is the final tax on the dividends? A.POB.P20,000C.P50,000D.P40,000
Subject - account Please help me. Thankyou.
Required information (The following information applies to the questions displayed below.) Marathon Inc. (a Ccorporation) reported $1700,000 of taxable income in the current year. During the year, distributed $170,000 as dividends to Its shareholders as follows: • $8,500 to Guy, a 5 percent individual shareholder. $25,500 to Little Rock Corp., a 15 percent shareholder (C corporation). • $136,000 to other shareholders. d. Complete Form 1120 Schedule C for Little Rock Corp. to reflect its dividends received deduction (use the most recent Form 1120 Schedule
At the beginning of the current Year ("Year 1"), C Corporation ("C") had two shareholders, A and B, and accumulated E&P of $10,000. A's adjusted basis in his shares of C stock was $200 and B's adjusted basis in her shares of C stock was $3,000. During the current Year C had a capital gain of $4,000 on July 1, Year 1, but had no other income or deductions. C distributed $4,000 cash to each of its two shareholder's, A and B, on March 1, Year 1. On October 1 of Year 1, B sold her shares in C to D for $8,000. On December 5, Year 1, C distributed $4,000 cash to each of A and D. Question. a. What dividend income does A recognize, if any, during Year 1? (Write just the numerical value i.e. $50) b. Does A recognize any income other than dividend income? (If no write $0. If yes write how but just the number (i.e. $50)) c. What is X' accumulated E&P at the beginning of Year 2? (Write just the numerical value i.e. $50)