The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of $50,000 received from 90%-owned domestic corporations. How much is the Johnson and Johnson corporation’s dividends received deduction for 2021? $0 $40,000 $50,000 $170,000

The John and John Corporation has ordinary income of $250,000 for 2021, including dividends of $50,000 received from 90%-owned domestic corporations. How much is the Johnson and Johnson corporation’s dividends received deduction for 2021? $0 $40,000 $50,000 $170,000

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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Martin Company has 500k in taxable income, 50k in interest income, 100k in dividend income. Using the corporate tax rate table, what is the company's tax liability for the year?
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The Brush Cherry Corporation has a $75,000 loss from operations (excluding dividends received) for 2019, and dividends of $150,000 received from 30 percent-owned domestic corporations. How much is the Brush Cherry Corporation's dividends received deduction for 2019? a.$45,000 b.$97,500 c.$120,000 d.$75,000 e.None of the amounts listed are correct.
ABC corporation, a calendar year S corporation, with two 50% shareholders, provided you with the following information for 2019: Tax-exempt interest income $10,000 Sales $300,000 Depreciation recapture income $12,000 Long-term capital gain $40,000 Section 1231 gain $7,000 Cost of goods sold ($142,000) Administrative expense ($35,000) Depreciation expense ($47,000) Charitable contributions ($7,000) Distributions to shareholders $100,000 1-1-2019 AAA balance $60,000 1-1-2019 shareholder basis in stock $45,000 each ($90,000 total) 1-1-2019 OAA balance $4,000 Calculate ABC corporation’s AAA balance as of 12-31-2019.
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An S corporation earns $6.30 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non-dividend income is 39%. What is the total amount of taxes paid if the company pays a $3.00 dividend? A. $1.97 B. $2.95 C. $3.44 D. $2.46 OC