Ee.65. Exercise 17-24 (Algorithmic) (LO. 2)Crane and Loon corporations, two unrelated C corporations, have the following transactions for the current year.Gross income from operationsExpenses from operationsDividends received from domestic corporations (15% ownership)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.CraneLoon$293,500 $469,600410,900493,080176,100352,200

A dividend is the payment of company profits to eligible shareholders. The amount and timing of…

Answered: Exercise 17-24 (Algorithmic) (LO. 2)…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 27CE

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36. ABC Industries has the following acount balances: S 75.000 $ 365,000 $ 297,000 $ 17,500 Retained eamings Revenue Operating Expenses Interest Expense Assume an income tax rate of 20%. What is the amount of income tax expense to be reported on the corporate income statement? a)$ 13,600. b)$ 15.000. c)$ 10,100. d)S 73.000.
Problem 15-14 (Algorithmic) (LO. 4) The profit and loss statement of Kitsch Ltd., an S corporation, shows $115,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income. Selling expenses ($23,000) Tax-exempt interest income 3,450 Dividends received 10,350 5 1231 gain 8,050 Depreciation recapture income 11,500 Net income from passive real estate rentals 5,750 Long-term capital loss (6,900) Salary paid to owners (each) (13,800) Cost of goods sold (103,500) a. Compute Kitsch's nonseparately stated income or loss for the tax year. The entity's nonseparately stated computed is $ b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?
Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________
LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.
Problem 11-5 (Algorithmic)Special Deductions and Limitations (LO 11.3) Fisafolia Corporation has gross income from operations of $423,000 and operating expenses of $359,550 for 2021. The corporation also has $42,300 in dividends from publicly-traded domestic corporations in which the ownership percentage was 45 percent. Below is the Dividends Received Deduction table to use for this problem.
Question Based upon the following facts about Aqua, Inc., a calendar year S corporation, prepare the entity's Schedule M-2, fill out column. AAA, beginning of the year $9,400 Ordinary income 24,600 Tax-exempt income 3,000 Key employee life insurance proceeds received 4,900 Payroll penalty expense 2,200 Charitable contributions 3,000 Unreasonable compensation 4,000 Premiums on key employee life insurance 2,300 Distribution to shareholders 17,000 Particulars Accumulated Adjustments Account Other Adjustments Account Balance at beginning of Tax Year 9400 Ordinary Income from page 1, Line 21 24600 Other additions 0 7900 Loss from Page 1, line 21 Other reductions 2300 Combine line 1 through 5 5600 Distributions other than dividend distributions 0 Balance at end of tax year 5600
WFO Corporation has gross receipts according to the following schedule: Year 1 $22.50 million Year 2 $23.55 million Year 3 $25.25 million Year 4 $25.50 million Year 5 $26.50 million Year 6 $28.50 million If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method? Multiple Choice ___ Year 3. ___ Year 4. ___ Year 5. ___ Year 6. ___ None of the choices are correct.
Q.2. You are presented with the following information relating to Betty's Inc for the year to 31 March 2018: Bank overdraft 500 Called-up share capital (issued and fully paid) 2,100 Corporation tax (based on the profit for the year to 31 March 2018) 900 Accounts payable 300 Accounts receivable 200 Deferred taxation (credit) 80 Non-current assets: at cost 3,800 accumulated depreciation (at 31 March 2018) 1,400 Non-current asset investments: at cost 100 Retained profits (at 1 April 2017: credit) 1,200 Proposed dividend 420 Retained profit (for the year to 31 March 2018) 585 Share premium account 315 Inventory: at cost (at 31 March 2018) 400 Trade accounts payable 2,000 Trade accounts receivable 5,300 Required: In so far as the information permits, prepare Betty's Inc statement of financial position as at 31 March 2018 in accordance with the minimum requirements of the relevant accounting standards.
CShsiger-ne tolowing income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Staternent Sales $48,800 34,800 Costs Taxable income Taxes (22%) Net income $14,000 3,080 $10,920 Dividends Addition to retained earnings 8,403 $ 2,517 The balance sheet for the Heir Jordan Corporation follows HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Cash Accounts receivable Current liabilities 2,650 Accounts payable $ 2,400 3,600 Notes payable 5,300 $ 7,700 24,000 Common stock and paid-in surplus 18,000 Inventory 9,000 Total Total s 15,250 Long-term debt Owners' equity Fixed assets Net plant and equipment 38,400 Retained earnings 3,950 $ 21,950 53,650 Total liabilities and owners' equity 53,50 Total Total assets Prepare a pro forma balance sheet assuming an increase in sales of 12 percent, no new external debt and a constant payout ratio (Do not round intermediate calculations and round you answers to 2 decimal places, e.g., 32.16.)
1. Current ratio is 1.8:1 with working capital amounting to P 20,000, how much must the current liabilities be? a. P 45,000 b.P36,000 c.P25,000 d.P20,000 2. Selected data from the year end financial statements of Sister Corporation are presented below : ( The difference between average and ending inventories is immaterial). Current ratio 3 Quick ratio 2.5 Current liabilities P400,000 Inventory turnover 10X Gross Profit margin is 40% Sister’s net sales for the year were : a. P 2.00 million c. P 5.0 million b. 20 million d. 3.3 million 24 – 27 You are requested to reconstruct accounts of Angel Trading for analysis. The following data were available to you: Gross margin for 2019 amounts.……………. P800,000 Beginning balance of Merchandise Inventory.. 280,000 Long-term liabilities consisted of bonds Payable with interest rate of………. 15% Total Stockholders’ Equity , Dec 31, 2019 P 625,000…
Becker CPA Review 17-1 In the current year, Acorn, Inc., had the following items of income and expense: Sales $500,000 Cost of sales 250,000 Dividends received 25,000 The dividends were received from a corporation of which Acorn owns 30%. In Acorn's current-year corporate income tax return, what amount should be reported as income before special deductions? a.$525,000 b.$505,000 c.$275,000 d.$250,000
Company B, a CCPC provides you with the following income data for this fiscal year: Aggregate Investment Income: $4,000 Active Business Income: $2,000 Canadian Dividends Connected (50% ownership, dividend refund received $1,500): $4,000 Canadian Dividends Non-connected: $3,000 What is Company's B's Taxable Income for this year ?

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