Required information[The following information applies to the questions displayed below.]Tempe Corporation is a calendar-year corporation. At the beginning of 2022, its election to be taxed as an S corporationbecame effective. Tempe Corporation's balance sheet at the end of 2021 reflected the following assets (it did not have anyearnings and profits from its prior years as a C corporation):CashAssetAccounts receivableInventoryLandTotalsAdjusted Basis$ 26,00043,600FMV$ 26,00043,600236,000184,000174,000132,000$ 427,600$ 437,600Tempe Corporation's business income for the year was $46,000 (this would have been its taxable income if it were a Ccorporation).During 2022, Tempe Corporation sold all of the inventory it owned at the beginning of the year for $258,000.a. What is its built-in gains tax in 2022?Built-in gains tax

Step 1: Calculate the Built-in Gain First, we need to find the built-in gain for the inventory,…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Requir [The following information applies to the questions displayed below.] Virginia Corporation is a calendar-year corporation. At the beginning of 2023, its election to be taxed as an S corporation became effective. Virginia Corporation's balance sheet at the end of 2022 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation). Asset Cash Accounts receivable Adjusted Basis $ 20,000 40,000 90,000 150,000 FMV $ 20,000 40,000 200,000 175,000 Inventory Land Totals $ 300,000 $ 435,000 In 2023, Virginia Corporation reported business income of $50,000 (this would have been its taxable income if it were still a C corporation). What is Virginia's built-in gains tax in each of the following alternative scenarios? a. During 2023, Virginia Corporation sold inventory it owned at the beginning of the year for $100,000. The basis of the inventory sold was $55,000.
Essentials of Federal Income Taxation for Individuals and Business (2021) CHAPTER 14 C CORPORATIONS/ 14 QUESTIONS AND PROBLEMS 19. Charitable Contributions. (Obj. 2) Regal, Inc. reported the following for the year. Gross income includable on the tax return Allowable business deductions, not including charitable contributions Contributions to qualified charitable organizations Dividends received from domestic corporations (30% ownership and included in the $115,000 gross income amount) $115,000 90,000 2,750 2,000 What is Regal's charitable contribution deduction for the current year? a. b. What is the amount of taxable income for the current year? What is Regal's charitable contribution deduction carryover, if any? C.
Sophie Industries Inc. was a C-corporation that filed an S-election effective January 1, 2019. Which item has an impact on S-corporation’s AAA in 2019? a. Non-separately stated ordinary income earned in 2019. b. An additional capital contribution by a stockholder in 2019 c. Tax-exempt interest earned in 2019. d. A distribution from accumulated earnings and profits (AEP)
Analysis of the assets and liabilities of Beef Brisket Corporation on December 31, 2019 disclosed assets with a tax basis of P1,000,000 and a book basis of P1,300,000. There was no difference in the liability basis. The difference in asset basis arose from temporary difference that would reverse in the following years: 2020 - P80,000 2021 - 70,000 2022 - 72,0002023 - 40,0002024 - 38,000 The enacted tax rates are 30% for the years 2019 – 2022 and 32% for the years 2023 – 2024. What is the total deferred tax liability at December 31, 2019?
None
Alpesh
Accounting The following information relates to the operations of Sadaam Ltd. for the taxation year ended December 31, 2019 (all amounts are based on the relevant tax rules): Net Business Loss 212,700 Dividends From Taxable Canadian Corporations 50,250 Taxable Capital Gains 14,400 Allowable Capital Losses 6,638 Charitable Donations 8,100 At the beginning of the taxation year, the Company had a carry forward of unused charitable donations of $1,975 from the previous year, and a net capital loss carry forward of $14,500 [(1/2)($29,000)]. It is the policy of the Company to minimize net capital loss balances prior to using any other type of carry over balance. Required: Calculate the corporation's minimum Net Income For Tax Purposes and Taxable Income for its 2019 taxation year. Indicate any balances available for carry forward to subsequent years.
Bravery Pte Ltd, was incorporated on 16 January 2019 as a manufacturing company with an accounting year end of 31 December. It is wholly owned by XYZ Ltd. It has a chargeable income before exempt income of $1,000,000 for the year ended 31 December 2021. Calculate its net tax payable for Year of Assessment 2022. 1) $120,575 2) $148,750 3) $144,075 4) $152,575
1. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation accumulated earnings and profits ( E & P) at the beginning of 2021 was $210,000 ( including consideration for the dividends listed below) Marjorie Corporation also had the following information for 2021. Taxable income $350000, federal income tax $119,000, dividends received ( less than 20& owned domestic corporation $ 100,000, Cash dividends paid in 2021 $ 40,000, dividends paid January 31 2021 $ 20,000, Consent dividends $ 10,000, Excess charitable contribution $ 16,000. Net capital loss adjustment $ 8000. The Accumulated taxable income for purpose of the Accumulated Earnings tax for Marjorie’s Corporation for the year of 2021 is 1.$97000 2.$90000 3.$110000 4.$100000 Answer is $97,000 please explain this how 2. Marjorie corporations ”total” reasonable business needs for 2021 was $320,000. Marjorie corporation’s Accumulated earnings and profits ( E & P) at the…
Ignoring income tax, by what amount should shareholders’ equity be increased for 2021 and 2022 in current value financial statements?
Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2020. Gull incurred the following expenses during its first year of operations (November 1, 2020–December 31, 2020): Expenses of temporary directors and organizational meetings $21,000 Fee paid to state of incorporation 3,000 Expenses for printing and sale of stock certificates 11,000 Legal services for drafting the corporate charter and bylaws (not paid until January 2021) ⁢ 19,000 Assuming that Gull Corporation elects under § 248 to expense and amortize organizational expenditures, what amount may be deducted in 2020? Assume the same facts as above, except that the amount paid for the legal services was $28,000 (instead of $19,000). What amount may be deducted as organizational expenditures in 2020?
None

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