financial account Riverbend Inc. received a $220,000 dividend from stockit held in Hobble Corporation. Riverbend's taxableincome is $3,020,000 before deducting the dividendsreceived deduction (DRD), a $53,500 NOL carryover, a$23,500 domestic production activities deduction, anda $189,000 charitable contribution.a. What is Riverbend's deductible DRD assuming itowns 15 percent of Hobble Corporation?b. Assuming the facts in part (a), what is Riverbend'smarginal tax rate on the dividend?c. What is Riverbend's DRD assuming it owns 48percent of Hobble Corporation?d. Assuming the facts in part (c), what is Riverbend'smarginal tax rate on the dividend?

Part (a): DRD with 15% OwnershipStep 1: Understand the DRD RateIf a corporation owns less than 20%…

Answered: Riverbend Inc. received a $220,000…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter20: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 16CE

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Riverbend Inc. received a $267,500 dividend from stock it held in Hobble Corporation. Riverbend's taxable income is $2,440,000 before deducting the dividends received deduction (DRD), a $45,000 NOL carryover, and a $137,000 charitable contribution Assuming the facts in part (c), what is Riverbend’s marginal tax rate on the dividend?
For 20X1, XYZ Corporation has a Gross Income of $ 1,000,000 and a total of Ordinary and Necessary Expenses of $ 600,000. Expenses include an item of $ 50,000 for Donations. All items are presented on a tax basis. The entity has not incurred net operating losses or received dividend income. Determine the amount of deductible donations for XYZ Corporation in 20X1. Select one: O a. S45,000 O b. S35,000 O c. SO O d. $50,000
Piper Corp. had a taxable net income of P5,500,000 and total assets of P100 million. It had the following data on expenses for the taxable year.Salary expense, P1,200,000Rent expense, P240,000Advertising expense, P60,000Depreciation expense, P50,000Interest expense, P600,000Interest income, net of 20% final tax, P240,000How much is the regular itemized deductions? CHOICES P2,102,000 P2,090,000 P2,051,000 P2,150,000
Lanco Corporation, an accrual-method corporation, reported taxable income of $1,720,000 this year and paid Federal income tax of $361,200. Included in the computation of taxable income were the following items: • MACRS depreciation of $253,000. Depreciation for earnings and profits purposes is $124,000. • A net capital loss carryover of $13,700 from last year. • A net operating loss carryover of $31,000 from last year. $76,750 capital gain from the distribution of land to the company's sole shareholder (see below). Not included in the computation of taxable income were the following items: • Tax-exempt income of $8,600. • Life insurance proceeds of $267,000. • Excess current-year charitable contribution of $2,300 (to be carried over to next year). • Tax-deferred gain of $21,300 on a like-kind exchange. • Nondeductible life insurance premium of $4,700. • Nondeductible interest expense of $3,600 on a loan used to buy tax-exempt bonds. . Lanco's accumulated E&P at the beginning of the…
Required information [The following information applies to the questions displayed below.] Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible DRD in each of the following situations: b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). Deductible DRD
Red Corporation has taxable income before DRD of $174,000. Included in that amount is a dividend of $20,000 from a large publicly-traded domestic corporation. Red also made a $25,000 cash contribution to a qualified charitable organization. The contribution is not included in the net income amount given. What is taxable income of Red Corporation? $146,600. $149,000. $139,000. $143,600.
Piper Corp. had a taxable net income of P5,500,000 and total assets of P100 million. It had the following data on expenses for the taxable year. Salary expense, P12,000,000 Rent expense, P2,400,000 Advertising expense, P600,000 Depreciation expense, P500,000 Interest expense, P6,000,000 Interest income, net of 20% final tax, P2,400,000 How much is the regular itemized deductions?
Saffron Corporation has book income of $200,000, which includes tax expense of $40,000 and a net capital loss of $10,000. Saffron's taxable income is: Multiple Choice $230,000. $240,000. $210,000. $250,000.
Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible dividends-received deduction (DRD) in each of the following situations: Required: a. WC's taxable income (loss) without the dividend income or the DRD is $10,000. b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). c. WC's taxable income (loss) without the dividend income or the DRD is $(99,000). d. WC's taxable income (loss) without the dividend income or the DRD is $(101,000). e. WC's taxable income (loss) without the dividend income or the DRD is $(500,000). f. WC's taxable income (loss) without the dividend income or the DRD is $10,000. What is WC's book-tax difference associate with its DRD? Is the difference favorable or unfavorable? Is it permanent or temporary? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D DRD WC's taxable income (loss)…
Wasatch Corporation (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC's deductible dividends - received deduction (DRD) in each of the following situations: Required: a. WC's taxable income (loss) without the dividend income or the DRD is $10,000. b. WC's taxable income (loss) without the dividend income or the DRD is $(10,000). c. WC's taxable income (loss) without the dividend income or the DRD is $(99,000). d. WC's taxable income (loss) without the dividend income or the DRD is $(101,000). e. WC's taxable income (loss) without the dividend income or the DRD is $(500,000). f. What is WC's book - tax difference associated with its DRD in part (a)? Is the difference favorable or unfavorable? Is it permanent or temporary? Answer is not complete. Complete this question by entering your answers in the tabs below. WC's taxable income (loss) without the dividend income or the DRD is $10,000. Wasatch Corporation (WC) received a…
Saffron Corporation has book income of $200,000, which includes tax expense of $40,000 and a net capital loss of $10,000. Saffron's taxable income is:
General Accounting

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