Tuff Industrial Products is a limited liability company taxable as a partnership. TIP manufactures valves and hoses used in industrial equipment. TIP was formed on April 3, 2022. You are approached by the principals of TIP for tax advice - specifically, they want to know what year - end they should adopt and what method of accounting should be used for tax purposes. What information do you need from TIP to properly address their questions? What general advice can you give them?

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Beta Corporation (the Company), which is an environmental service company, is taxed as a C Corporation and has a calendar accounting period. The Company files its income tax return (form 1120) on the accrual method of accounting. The Company's gross receipts for each of the years ended December 31, 2018-2020 have exceeded $50 million dollars and the Company is not otherwise exempted from the requirements of IRC Sec 163(j). The Company's trial balance for the year ended December 31, 2021, is as follows. Note: The Company does not have any floor plan financing interest expense and the Company files income tax returns in Virginia only and the tax rate in Virginia is a flat 6%. Beta Corporation Trial Balance 12.31.21 Debit Credit Cash 25,000 Accounts receivable 230,000 Equipment Accumulated depreciation 1,750,000 1,750,000 Intangible assets 145.000 Accumulated amortization 14,500 Accounts payable Notes payable bank 45,000 2,000,000 Common Stock 5,000 Retained earnings 1,777,000 Sales…

Which of the following taxpayers may claim a deduction for qualified business income? a. A driver for Uber or Lyft. b. A vetenarian operating as an S corporation. In addition to veterinary services, revenues are also derived from the sale of pet food and supplies and from the boarding of animals.  c. A CPA operating as an LLC taxed as a sole proprietorship. The CPA is single and has taxable income of $150,000. d. Same as part(c), except the CPA has taxable income of $200,000 e. A real estate salesperson. f. A pet sitter/ dog walker. g. A sole proprietor software developer. h. An individual wage earner who derives $60,000 of rental income from a duplex she owns.

In 2021, a company performed service for the customers. It will receive payments from the customers in 2022. At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer). 1. record a deferred tax asset. 2. record a deferred tax liability. 3. have a permanent difference in pretax financial income and taxable income for 2021. 4. have no differences in pretax financial income and taxable income for 2021.

Jamie is an employee of LMN Corporation. He also sits on the board of directors of the organization. What method will be used to calculate the income tax on his director's fees?   Lump-sum tax method   Retroactive tax method   Bonus tax method   Regular pay period deduction method

Which of the following statements is true of corporations in 2021? Select one: a. Capital losses of a corporation may be deducted from ordinary income, subject to an annual limitation. b. A corporation may deduct organizational expenditures as they are incurred. c. If a corporation has a long-term capital loss that is carried back, it is treated as a short-term capital loss d. Income of all corporations is taxed in the same way that income of partnerships is taxed.

a. Compute XYZ's taxable income. b. Compute XYZ's income tax liability.

For an accrual basis taxpayer, the all events test is not met until economic performance occurs.  Economic performance occurs: (a.) When a corporation receives its completed tax return from its accountant (b.) When the employees of self-insured corporation receive medical treatment (c.) When a corporation purchases a $5 million annuity in settlement of $20 million award to a plaintiff/customer in a production liability lawsuit (d.)  On March 1, when a corporation uses a leased copy machine to make 12,000 copies for the month of March and it must pay $.10 per copy for copies mad in excess 10,000 plus a flat fee of $500/month.

The entity reports the following transactions for the 2022 tax year. The trustee accumulates all accounting income for the year. Operating income from a business Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds Trustee fees, deductible portion Net rental losses, passive activity $785,000 47,100 6,280,000 (23,550) (157,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute the Federal income tax liability for the Valerio Trust by providing the following amounts: The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $ The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $ The Federal income tax liability for the Valerio Trust is $