! Required information. [The following information applies to the questions displayed below.] Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable Income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) c. What amount of capital gain (if any) would Tiny and Tim report on the distributions in part (b) if their stock bases are $2.000 and $10,000, respectively? (Do not round intermediate calculations.) Answer is complete but not entirely correct. $ 4,000 5 23,000 Capital gain Tiny Capital gain-Tim

! Required information. [The following information applies to the questions displayed below.] Tiny and Tim each owns half of the 100 outstanding shares of Flower Corporation. This year, Flower reported taxable Income of $6,000. In addition, Flower received $20,000 of life insurance proceeds due to the death of an employee (Flower paid $500 in life insurance premiums this year). Flower had $5,000 of accumulated E&P at the beginning of the year. (Leave no answer blank. Enter zero if applicable.) c. What amount of capital gain (if any) would Tiny and Tim report on the distributions in part (b) if their stock bases are $2.000 and $10,000, respectively? (Do not round intermediate calculations.) Answer is complete but not entirely correct. $ 4,000 5 23,000 Capital gain Tiny Capital gain-Tim

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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Larry and Barry owned equally all of the stock of an S corporation. The S corporation has a loss of $80,000 during a non-leap year. Larry sells his one half interest in the S corporation stock to his friend, James, on the 150th day of the year. How much of the loss should be allocated to Larry rounded to the nearest dollar? Group of answer choices $40,000 $47,123 $16,438 $23,562
S2.
WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100 shares. On September 30, he gave 25 shares to his brother and 40 shares to his daughter. WRT's ordinary income for the year was $208,000. Required: What portion of this income must each shareholder include in income? Note: Assume 365 days in a year. Round income per day of ownership to 4 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount. Brother's income Daughter's income Mr. Wallace's income Amount
These are the correct answers, but please explain thoroughly the work on how to do each section please. Thank you
[The following information applies to the questions displayed below] Ray and Matias own 50 percent capital and profits interests in Alpine Properties LLC. Alpine builds and manages rental real estate, and Ray and Matias each work full time (over 1,000 hours per year) managing Alpine. Alpine's liabilities (at both the beginning and end of the year) consist of $1,540,000 in nonrecourse mortgages obtained from an unrelated bank and secured by various rental properties. At the beginning of the current year, Ray and Matias each had a tax basis of $250,000 in his respective LLC interest, including his share of the nonrecourse mortgage liability. Alpine's ordinary business losses for the current year totaled $608,000, and neither member is involved in other activities that generate passive income Note: Leave no answer blank. Enter zero if applicable. Problem 20-79 Part b (Algo) b. How much of each member's loss is suspended because of the at-risk limitation? Loss suspended Ray Matias
Sweeney originally contributed $190,000 in cash for a one-fourth interest in the Gilbert LLC. During the several years that Sweeney was a member of the LLC, his share of the LLC's income was $114,000 and he withdrew $76,000 cash. The LLC's liabilities are $95,000, of which Sweeney's share is $23,750. The LLC has $47,500 of hot assets, of which Sweeney's share is $11,875. Sweeney sells his LLC interest to Jana for $250,800 cash, with Jana also assuming Sweeney's share of the LLC's liabilities. How much is Sweeney's gain on the sale, and what is its character? Sweeney's total gain on the sale is $fill in the blank 1 , of which $fill in the blank 2 recognized as ordinary income, with the remaining $fill in the blank 3 recognized as a long-term capital gain. How much is Jana's adjusted basis for her LLC interest? $fill in the blank 4
11.
Sonny and Cher equally own Song Corporation, an 5 corporation. Each has a $50,000 stock basis at the beginning of the year. Song Corporation has a $100,000 mortgage on its balance sheet, as well as a note payable to Cher for $25,000. During the current year, Song Corporation reports an ordinary loss of $105,000. 1. What is Sonny's stock basis at the end of the year? 2. What is Sonny's debt basis at the end of the year? 3. What loss will Sonny report on his tax return for the year? 4. What is Cher's stock basis at the end of the year? 5. What is Cher's debt basis at the end of the year? 6. What loss will Cher report on her tax return for the year?
Subject: accounting
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At her death, Chow owned 55% of the stock in Finch Corporation, with the balance held by family members. In the past five years, Finch has earned average net profits of $1,710,000, and on the date of Chow's death, the book value of its stock is $4,275,000. An appropriate rate of return for Finch's business is in is 11.8%. If required, round your intermediate computations to the nearest dollar. х. a. If goodwill exists, the total value of Finch stock is What value would the IRS argue that the stock Chow owned should be included in her estate?
Facts: Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. Ellie has a basis in Otter Enterprises of $80,000 at the beginning of the year. Linda has a basis in Otter Enterprises of $60,000 at the beginning of the year. Assume that Otter Enterprises has no debt. Otter Enterprises has $320.000 of gross income and $210.000 of operating expenses. In addition. Otter has a long-term capital gain of $15.000 and makes distributions to Ellie and Linda of $25,000 each. Required: Discuss the impact of this information on the taxable income of Otter. Ellie, and Linda if Otter is: A. A partnership. B. An S corporation. C. AC corporation. Include in your discussion (1) the amount and character of any income recognized by Ellie, Linda, and Otter (including Otter's taxable income and the amount of any tax paid by Otter) in each business entity form; and (2) Ellie and Linda's basis in Otter Enterprises at the end of the year in each business entity form. Show your work and…