(The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $115,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,800. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,500 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 $47,500. How much dividend income will Matt recognize this year? Dividend recognized

(The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $115,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $13,800. At the beginning of the year, Lone Star's sole shareholder was Matt McCon. Lone Star declared $34,500 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 $47,500. How much dividend income will Matt recognize this year? Dividend recognized

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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During the year, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. At the end of last year, his stock basis was $4,000. The corporation earned $11,000 ordinary income during the year. It has no accumulated E & P. Which statement is correct? a. Nutt recognizes a $1,000 LTCG. b. Nutt's stock basis is $2,000. c. Nutt's ordinary income is $15,000. d. Nutt's tax-free return of capital is $11,000.'
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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:
During Year 11, Pacilio Security Services experienced the following transactions: Paid the sales tax payable from Year 10. Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes). Issued 5,000 additional shares of the $5 par value common stock for $8 per share. Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share. Purchased $500 of supplies on account. Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase. After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable. Sold 210 alarm systems for $600 each plus sales tax of 5 percent. All sales were on account. Record the cost of goods sold related to the sale from Event 8 using the FIFO method. Billed $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were…
TyroneCo, an S corporation with a positive E & P balance, reports gross receipts for the year totaling $533,000 (of which $266,500 is passive investment income). Expenditures directly connected to the production of the passive investment income total $106,600. Compute Tyrone's passive investment income tax. If required, round your final answer to the nearest dollar.
Weld Corporation is constructing a plant for its own use. Weld capitalizes interest on an annual basis. The following expenditures are made during the current year: January 1, $102,000; July 1, $986,000; September 1, $2,720,000; and December 31, $7,174,000. The following debts were outstanding throughout the current year. Debt Construction note, 12% Short-term note payable, 15% Amount $340,000 1,360,000 Accounts payable (noninterest-bearing) 1,360,000 Note: Round all of your answers to the nearest whole number or whole percentage point. a. Compute the amount of interest to be capitalized during the year. Calculation of Actual Interest Debt Debt Amount Interest rate Interest Amount Specific Debt Construction loan $ 340,000 12 % $ 40,800 General Debt Note payable $ 1,360,000 15% Total Actual Interest $ 204,000✔ 244,800 Calculation of Weighted Average Accumulated Expenditures Weighted Avg. Date January 1 July 1 $ Expenditures 102,000 ✔ 986,000 ✔ Months outstanding Accum. Expenditures 12 $…
A. 1
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The following information is available for Wildhorse Corporation for the year ended December 31, 2020: sales revenue $780,000, other revenues and gains $95,500, operating expenses $113,000, cost of goods sold $461,000, other expenses and losses $35,000, and preferred stock dividends $27,050. The company’s tax rate was 30%, and it had 55,000 shares outstanding during the entire year. 1. Prepare a corporate income statement. (List other revenues before other expenses.) 2 Calculate earnings per share.
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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