FSGC) is a calendar-year corporation.

SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter12: S Corporations
Section: Chapter Questions
Problem 32P
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Question
Fielding Sporting Goods Corporation
(FSGC) is a calendar-year corporation. What
is the Book to Tax Reconciliation's
Adjustments, and Taxable Income?
1) FSGC owns 40 percent of the
outstanding Magnolia Corp. (MC) stock.
Magnolia Corp. reported $1,000,000 of
income for the year. FSGC
accounted for its investment in MC under
the equity method and it recorded its pro
rata share of MC's earnings for the year. MC
also
distributed a $150,000 dividend to FSGC.
Description
Вook
Income
Adjustments Adjustments
(Debit)
(Credit)
Тахable
Income
Income From
Investment in
400,000
Corporate
Stock
Dividends
Received
Deduction
Transcribed Image Text:Fielding Sporting Goods Corporation (FSGC) is a calendar-year corporation. What is the Book to Tax Reconciliation's Adjustments, and Taxable Income? 1) FSGC owns 40 percent of the outstanding Magnolia Corp. (MC) stock. Magnolia Corp. reported $1,000,000 of income for the year. FSGC accounted for its investment in MC under the equity method and it recorded its pro rata share of MC's earnings for the year. MC also distributed a $150,000 dividend to FSGC. Description Вook Income Adjustments Adjustments (Debit) (Credit) Тахable Income Income From Investment in 400,000 Corporate Stock Dividends Received Deduction
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