A proprietorship registered as BMBE reported gross income from sales of P400,000. It also reported dividend income from a domestic corporation and interest on deposits in the amounts of P9,000 and P6,800, respectively. Compute the total exclusion from gross income subject to RIT.
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A proprietorship registered as BMBE reported gross income from sales of P400,000. It also reported dividend income from a domestic corporation and interest on deposits in the amounts of P9,000 and P6,800, respectively. Compute the total exclusion from gross income subject to RIT.
A. P400,000
B. P415,800
C. P15,800
D. Zero
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- During the current year, Thrasher (a calendar year, accrual basis S corporation) records the following transactions. a. Determine Thrasher Corporations separately stated items for the current year. b. Determine Thrashers ordinary business income for the current year.Crane and Loon Corporations, two unrelated C corporations, have the following transactions for the current year. Crane Loon Gross income from operations $283,500 $453,600 Expenses from operations 396,900 476,280 Dividends received from domestic corporations (15% ownership) 170,100 340,200 Click here to access the dividends received deduction table. a. Compute the dividends received deduction for Crane Corporation. b. Compute the dividends received deduction for Loon Corporation.In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that Oak Corporation owns 25%, Elm owns 15% and Mahogany owns 60% of the stock in the corporations paying the dividends. OakCorporation ElmCorporation MahoganyCorporation Income from operations $650,000 $900,000 $825,000 Expenses from operations (525,000) (1,050,000) (830,000) Qualifying dividends 160,000 160,000 160,000 Click here to view the dividend received deduction ownership percentages and corresponding deduction percentage. a. The dividends received deduction for Oak Corporation is b. The dividends received deduction for Elm Corporation is c. The dividends received deduction for Mahogany Corporation is
- The following are the revenue items in the Income Statement of a domestic corporation for the year 2021:Gain from sale of office equipment, P20,000Gain from sale of land not used in business (selling price of P300,000), P100,000Gain from sale of shares of stock directly to the buyer, P50,000Gain from sale of shares of stock through the stock exchange (selling price, P200,000), P10,000Bad debt recovery, P50,000How much is the total capital gains tax? a. P21,250 b. P25,500 c. P60,000 d. P45,000The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income. Treadwell is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. (attached image) a. Compute Treadwell's nonseparately stated income or loss for the tax year. b. What would be the share of this year's nonseparately stated income or loss items for Leo Lion, one of the Treadwell shareholders? c. What is Leo Lion's share of tax-exempt interest income, if any?a) Calculate the S corporation's ordinary (non-separately stated) income and indicate which items must be separately stated b) If at the beginning of the year, Archer had a basis of 20,000 compute Archer’s basis at the end of the year. c) Assume that Voyager reported a loss of $70,000 instead (and no separately stated items or distributions). If Janeway had a basis of 10,000 in her stock at the beginning of the year, what is the amount of loss she can report on her return?
- Q Corporation, an S corporation, is solely owned by V. V’s stock basis at the beginning of the year is $8,000. Q has the following beginning-of-year account balances: Accumulated Adjustments Account (AAA) $10,000 Accumulated Earnings and Profits (AE&P) 15,000 Other Adjustments Account (OAA) 6,000 For the year, Q Corporation reported net ordinary income of $12,000 and tax-exempt income of $7,000. It also made a cash distribution to V at year-end of $30,000. Calculate the corporation's AAA and AE&P at year-end. SHOW WORK FOR PARTIAL CREDIT.The record of ABAKA Corporation, a closely-held corporation shows the following calendar years: Year 2018 Gross income, P4,500,000Allowable expenses, P 2,800,000Rental income, net of 5% withholding tax, P 475,000Interest on money market placement (net), P 90,000Inter-corporate dividends, P480,000Additional information: Dividends paid, P 1,700,000Payments, first three quarters, P 50,000Ordinary shares, P700,000Share premium, P200,000Year 2019 Gross income, P 3,200,000Expenses, P 3,000,000Net Income, P200,000Retained Earnings, P 500,000How much is the improperly accumulated earnings tax in 2018 ?XYZ Inc., was a C corporation through the end of year 6. Starting at the beginning of year 7, XYZ Inc., elected S corporation status. At the end of year 6, XYZ had accumulated earnings and profits (E & P) of $53,700. At the end of year 7, XYZ had a balance of $32,000 in its accumulated adjustments account (AAA). During year 8, XYZ had ordinary income of $15,300 and made distributions of $100,000. What amount of the distribution will be a taxable dividend to the shareholders of XYZ at the end of year 8? a.$1,000 b.$47,300 c.$52,700 d.$53,700
- During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions: Income from operations $660,000 Expenses from operations 760,000 Dividends received from Brown Corporation 240,000 Click here to view the dividend received deduction table. a. Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?Swallow's taxable income after deducting the dividends received deduction is $. b. Assume instead that Swallow Corporation owns 26% of Brown Corporation's stock. How much is Swallow's taxable income or NOL for the year?Swallow's NOL after deducting the dividends received deduction is $.With respect to GRIP and LRIP balances, which of the following statements is NOT correct? A CCPC'S GRIP account is increased by 72% percent of the company's taxable income. A CCPC'S GRIP account is reduced by the amount of eligible dividends designated in the preceding taxation year. A CCPC'S GRIP account is increased by the amount of eligible dividends received during the current year. A public company's LRIP account is increased by the amount of non-eligble dividends received.In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that none of the corporate shareholders owns 20% or more of the stock in the corporations paying the dividends. AlmondCorporation BananaCorporation CherryCorporation Income from operations $700,000 $800,000 $900,000 Expenses from operations (600,000) (860,000) (910,000) Qualifying dividends 100,000 100,000 100,000 Click here to view the dividend received deduction table. a. The dividends received deduction for Almond Corporation is $fill in the blank 1. b. The dividends received deduction for Banana Corporation is $fill in the blank 2. c. The dividends received deduction for Cherry Corporation is $fill in the blank 3.