Wilson acquires 1500 of the 10000 shares of Star Corp for $900,000. Wilson exerts significant control over Star. Star reports $500,000 of net income in 2022 and paid $5 per share in dividends. What amount of income will Wilson report on this investment?
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Wilson acquires 1500 of the 10000 shares of Star Corp for $900,000. Wilson exerts significant control over Star. Star reports $500,000 of net income in 2022 and paid $5 per share in dividends. What amount of income will Wilson report on this investment?
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- Kristoff purchased 250 shares of Marigold Company shares for $4,000 on February 2, 2022. On August 2, 2022, he sold all 250 shares for $5,700. What is the resulting gain or loss? Is it a short-term or long-term capital gain or loss?Roberts owns 40% of Simpson. On April 1, 2020 Roberts reduces its ownership of Simpson to 10%. From January 1-March 31 Simpson earns $80,000 and pays dividends of $30,000. From April 1- December 31 Simpson earns $300,000 and pays dividends of $100,000. What is the total income reported by Roberts in 2020In 2017, Marvin bought 100 shares of ABC stock. He decided to sell the stock on March 30, 2022. Marvin’s original cost for the stock was $15,065 plus an additional $55 in broker’s fees. When he sold the stock, he received gross proceeds of $9,757. What is the net gain or loss from his transaction? Is it a long- or short-term capital gain or loss?
- Rodger owns 100 percent of the shares in Trevor Incorporated a C corporation. Assume the following for the current year: Trevor Incorporated’s pretax income = $21,500 Percentage of after-tax earnings retained by Trevor Incorporated = 0% (i.e., all after-tax earnings distributed) Rodger’s dividend tax rate = 15% Given these assumptions, how much cash does Rodger have from the dividend after paying taxes on the distribution? (Round your intermediate calculations and final answer to whole number dollar amount.)DeMilo, Inc., owns 100 percent of the 40,000 outstanding shares of Ricardo, Inc. DeMilo currently carries the Investment in Ricardo account at $490,000 using the equity method.Ricardo issues 10,000 new shares to the public for $15.75 per share. How does this transaction affect the Investment in Ricardo account that appears on DeMilo’s financial records?Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?
- 3) Sally purchased 100 shares of Intel in her IRA on January 4, 2018 for $95 per share. She subsequently sold those shares on June 1, 2020 for $203 per share. What was the amount of her capital gain and how much tax would she pay on this transaction? 9) Sally bought 300 shares of CSCO for $35.60 in her brokerage account on March 16, 2020, and sold half of her position on August 24, 2020, for $42.20. What's her capital gain and at what tax rate will she pay on those gains? 17) Assume Josephine purchases a home for $180,000 and has a 20% down payment. If she finances the purchase with a 30 year mortgage with a 4% interest rate....... what is her monthly payment? If she pays the mortgage through the entire term with no early payment, how much interest will she pay over the life of the loan? 19) Assume Earl purchased 1000 shares of Tesla in his brokerage account on June 1, 2017 for $33.74 per share and sold his entire position for $62.93 per share on May 2, 2020. Assuming he is filing his…Yin and Jordan form a Corporation together on March 22, 2022. Jordan transfers cash of $300,000 in exchange for 30,000 shares. Yin transferred a Patent with a basis of $50,000 and FMV of $60,000 in exchange for 26,000 shares in the company and an office building with a basis of $110,000, liabilities of $40,000 and FMV of $200,000. What is Yin's basis in the 26,000 shares she got in the exchange on March 22, 2022? What is the Corporation's basis in the "Office Building" received from Yin?DeMilo, Inc., owns 100 percent of the 43,000 outstanding shares of Ricardo, Inc. DeMilo currently carries the Investment in Ricardo account at $346,400 using the equity method. Ricardo issues 7,000 new shares to the public for $11.75 per share. How does this transaction affect the Investment in Ricardo account that appears on DeMilo’s financial records?
- Lily owns 10,000 shares of SOS Corporation, a private corporation, in 2020. The latest audited financial statement of SOS Corp has total assets of Php15,000,000 and total liabilities of Php3,000,000.Total number of shares issued and outstanding is 30,000. Lily acquired the shares at par value. Par value shares of SOS Corp.’s shares of stocks is Php100 per share. Lily paid her broker Php90,000 in commissions and paid Php10,000 for the documentary stamp taxes. How much capital gains tax must Lily pay for the sale of shares of stocks.A. ZeroB. Php450,000C. Php600,000D. Php435,000Check my work Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. What is Sharrod’s new basis in the Kaiwan stock? Beginning Basis 32000 Add Long -term cap gain 5000 Less Distribution -20000 Deductible loss -17000 Basis in stock 0 Stock basis is 0X owns 20% of the stocks of Y Corporation. X and Y are both domestic corporations. Y declared P120,000 dividends in 2021. How much dividend income after any applicable tax will X receive? a.P19,000 b.P18,000 c.P24,000 d.P20,000