Problem 12-23 (Algorithmic) (LO. 5, 6)Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 30% Zebra shareholder throughout the year.Sales$135,000Cost of goods sold(54,000)Depreciation expense (MACRS)(13,500)Administrative expenses(6,750)§1231 gain21,000Depreciation recapture income28,500Short-term capital loss from stock sale(6,500)Long-term capital loss from stock sale(5,500)Long-term capital gain from stock sale17,000Charitable contributions(5,800) a. Indicate whether the following items are included in nonseparately computed income. Select "Yes or No", whichever is applicable.Note: Round final value to the nearest whole dollar.SalesCost of goods soldDepreciation expense(MACRS)Administrative expenses§1231 gainDepreciation recaptureincomeShort-term capital loss fromstock saleLong-term capital loss fromstock saleLong-term capital gain fromstock saleCharitable contributionsCalculate Sammy's share of Zebra's nonseparately computed income or loss.His share of the nonseparately computedis $b. Calculate Sammy's share of any Zebra long-term capital gain, if any.c. Calculate Sammy's share of charitable contributions, if any.

Name: Problem 12-23 (Algorithmic) (LO. 5, 6)Zebra, Inc., a calendar year S
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Problem 12-23 (Algorithmic) (LO. 5, 6)Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 30% Zebra shareholder throughout the year.Sales$135,000Cost of goods sold(54,000)Depreciation expense (MACRS)(13,500

Non- separately determined income or loss refers to the gross income of the company by deducting the…

Business

Accounting

Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 30% Zebra shareholder throughout the year. $135,000 (54,000) (13,500) (6,750) 21,000 Sales Cost of goods sold Depreciation expense (MACRS) Administrative expenses §1231 gain Depreciation recapture income Short-term capital loss from stock sale Long-term capital loss from stock sale Long-term capital gain from stock sale Charitable contributions 28,500 (6,500) (5,500) 17,000 (5,800)

Zebra, Inc., a calendar year S corporation, incurred the following items this year. Sammy is a 30% Zebra shareholder throughout the year. $135,000 (54,000) (13,500) (6,750) 21,000 Sales Cost of goods sold Depreciation expense (MACRS) Administrative expenses §1231 gain Depreciation recapture income Short-term capital loss from stock sale Long-term capital loss from stock sale Long-term capital gain from stock sale Charitable contributions 28,500 (6,500) (5,500) 17,000 (5,800)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lake acquired a controlling interest in Boxwood several years ago. During the current fiscal period, the two companies individually reported the following income (exclusive of any investment income): Lake Boxwood $ 308,000 100,000 Lake paid a $70,000 cash dividend during the current year, and Boxwood distributed $18,000. Boxwood sells inventory to Lake each period. Intra-entity gross profits of $25,200 were present in Lake's beginning inventory for the current year, and its ending inventory carried $38,700 in intra-entity gross profits. View each of the following questions as an independent situation. The effective tax rate for both companies is 21 percent. a. If Lake owns a 60 percent interest in Boxwood, what total income tax expense must be reported on a consolidated income statement for this period? (Round the intermediate calculations and final answers to the nearest dollar amount.) b. If Lake owns a 60 percent interest in Boxwood, what total amount of income taxes must be paid by…
Taft Corporation had after-tax income from continuing operations of $16.1 million for the year. Taft also reported a $2.95 million after-tax loss on the disposal of its textile subsidiary. Taft uses a calendar-year reporting period. Taft's capital structure consists of the following. ■ Preferred stock: 240,000 shares of $100 par, 8% cumulative nonconvertible preferred stock issued during the year. No dividends were declared in the current year. ■Common stock: 10,252,476 shares outstanding on January 1, $1 par. Dividends of $1 per share were declared and paid on June 30. On July 1, a three-for-one stock split was declared and the shares were issued. Required a. What type of capital structure does this company have (simple or complex)? Simple structure b. Compute required EPS amounts. c. Show the EPS presentation for financial reporting. Note: Enter the earnings per share amounts in dollars and cents, rounded to the nearest penny. Note: Use a negative sign with a loss. Income from…
We own 35% of Smith corporation, please prepare journal entries for the following events under the appropriate method of accounting. Smith corporation has $100,000 of Net Income for the year. Smith distributes $50,000 to its shareholders in distributions. Our investment in the Smith corporation stock increased by $20,000 during the year.
On January 1, Year 4, Goodkey Co. acquired all of the common shares of Jingya. The condensed income statements for the two companies for January, Year 5, were as follows: Sales Gain on sale of equipment Other income Depreciation expense Other expenses Income tax expense Net income Goodkey $10,100,000 810,000 10,910,000 460,000 6,610,000 1,983,000 Jingya $ 6,010,000 242,000 51,000 6,303,000 181,000 4,310,000 543,600 9,053,000 5,034,600 $ 1,857,000 $ 1,268,400 The following transactions occurred in January, Year 5, and are properly reflected in the income statements above: • On January 1, Year 5, Jingya sold equipment to Goodkey for $1,010,000 and reported a gain of $242,000. On this date, the equipment had a remaining useful life of four years. • On January 31, Year 5, Jingya paid a dividend of $610,000. Goodkey uses the cost method to account for its investment in Jingya. Both companies pay income tax at the rate of 40%.
During the current year, Elements Corporation has the following transactions: Income from operations $450,000 Expenses from operations 470,000 Dividends received fromR Corporation * 150,000 *Elements owns 10% of the stock in R Corporation. How much is Element Corporation’s taxable income (loss) for the year.
(TCO A) Bend Inc. holds 25% of the outstanding voting shares of Calico Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $9,000 per year. For 20X3, Calico reported earnings of $80,000 and paid cash dividends of $30,000. During 20X3, Calico acquired inventory for $57,600, which was then sold to Bend for $90,000. At the end of 20X3, Bend still held some of this inventory at its transfer price of $40,000.Required:(1) Determine the amount of intra-entity profit at the end of 20X3.(2) Determine the amount of Equity in Investee Income that Bend should have reported for 20X3.
Please Do not Give image format
Dog Subject: acounting
21 )
b. Suppose that Matt sold half of his shares to Chris Coop on June 1st for $40,000. How much dividend income will Matt recognize this year? Dividend recognized Show Transcribed Text G o c. If Matt's basis in his Lone Star shares was $7,000 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
Marathon Incorporated (a C corporation) reported $1,000,000 of taxable income in the current year. During the year, it distributed $100,000 as dividends to its shareholders as follows: • $5,000 to Guy, a 5 percent individual shareholder. • $15,000 to Little Rock Corporation, a 15 percent shareholder (C corporation). • $80,000 to other shareholders. Complete Form 1120 Schedule C for Little Rock Corporation to reflect its dividends-received deduction (use the most recent Form 1120 Schedule C available). (Use the 2021 tax rules regardless of the year on the form.)
Carter Corporation reports the following for the current taxable year: Gross income from operations $660,000 Dividends from 25%-owned corporation $300,000 Operating expenses $700,000 What is Carter’s taxable income?