ТахableCurrentAmountIncomeE&PIncomeTaxable Income176,500Sales412,000 412,000150,000 (150,000)133,0001,000COGSDividends (own 5%)133,000Muni Bond Interest1,000ExpensesCapital lossInterest ExpenseOperating ExpensesKey Life Insurance PremiumsTaxable income before Special Deductions(32,935)32,9355,000120,000 (120,000)6,000(5,000)(6,000)270,000(27,000) (3,000)(66,500) 66,500176,50037,065 (37,065)Charitable Contributions30,000Dividend Receivable DeductionTaxable IncomeFederal Income TaxCurrent E&P165,000Analyze the information provided to reconcile the shareholders' beginning and ending bases in their stock to determine the federal taxconsequences of JJC's corporate distributions. (Decreases should be entered with a minus sign.)OwnershipPercentage(%)35% 2.BeginningBasis inEndingBasis inIncreases orTaxable DistributionsShareholder(Decreases)(Dividends/Capital Gains)StockStockChao1.3.4.5. Dividends6. Capital gainsIris7.40% 8.9.10.11. Dividends12. Capital gains$Nolan13.25% 14.$0 15.0 16$0 17. Dividends18. Capital gains

Shareholders refer to the entities or an individual who buys some shares in a company and is…

Answered: 150,000 (150,000) 133,000 133, 000…

150,000 (150,000) 133,000 133, 000 1,000 1, (32, (5,000) 120,000 (120, 000) (6 270,000 30,000 (27, 000) (3, (66,500) 66 32,935 5,000 emiums 6,000 Special Deductions ons eduction 176

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 56P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Тахable
Current
Amount
Income
E&P
Income
Taxable Income
176,500
Sales
412,000 412,000
150,000 (150,000)
133,000
1,000
COGS
Dividends (own 5%)
133,000
Muni Bond Interest
1,000
Expenses
Capital loss
Interest Expense
Operating Expenses
Key Life Insurance Premiums
Taxable income before Special Deductions
(32,935)
32,935
5,000
120,000 (120,000)
6,000
(5,000)
(6,000)
270,000
(27,000) (3,000)
(66,500) 66,500
176,500
37,065 (37,065)
Charitable Contributions
30,000
Dividend Receivable Deduction
Taxable Income
Federal Income Tax
Current E&P
165,000
Analyze the information provided to reconcile the shareholders' beginning and ending bases in their stock to determine the federal tax
consequences of JJC's corporate distributions. (Decreases should be entered with a minus sign.)
Ownership
Percentage
(%)
35% 2.
Beginning
Basis in
Ending
Basis in
Increases or
Taxable Distributions
Shareholder
(Decreases)
(Dividends/Capital Gains)
Stock
Stock
Chao
1.
3.
4.
5. Dividends
6. Capital gains
Iris
7.
40% 8.
9.
10.
11. Dividends
12. Capital gains
$
Nolan
13.
25% 14.
$
0 15.
0 16
$
0 17. Dividends
18. Capital gains

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