BUSN
11th Edition
ISBN: 9780357302453
Author: Marcella Kelly; Chuck Williams
Publisher: Cengage Limited
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Chapter 14, Problem 3LO
Summary Introduction
To discuss: Strategic planning and different categories of business planning.
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Students have asked these similar questions
The entity reports the following transactions for the 2023 tax year. The trustee accumulates all accounting income for the year.
Operating income from a business
$565,000
33,900
Dividend income, all from U.S. corporations
(20% tax rate)
Interest income, City of San Antonio bonds
4,520,000
Trustee fees, deductible portion
(16,950)
(113,000)
Net rental losses, passive activity
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 Federal income tax liability for the Valerio Trust is $
The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $
1,790,299 X.
33,900 ✓
547,950 ✔.
Terrill Machining Inc. sells machine parts to auto mechanics. It has not paid a dividend in many years but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows: Common stock (2,400,000 shares at $5 par) . Capital in excess of par* ............................... Retained earnings ......................................... Net worth ................................................... $12,000,000 5,000,000 23,000,000 $40,000,000 *The increase in capital in excess of par as a result of a stock dividend is equal to the new shares created times (Market price – Par value). The company’s stock is selling for $20 per share. The company had total earnings of $4,800,000 during the year. With 2,400,000 shares outstanding, earnings per share were $2.00. The firm has a P/E ratio of 10. a. What adjustments would have to be made to the capital accounts for a 10 percent stock dividend? Show the new capital accounts. b. What adjustments would be made to…
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