JILLIAN OWNS 60% OF THE STOCK IN A PRIVATE CATERING CORPORATION. THERE ARE 1,200 SHARES IN THE ENTIRE CORPORATION. HOW MANY SHARES DOES JILLIAN OWN?
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- Devi is the chief executive officer of Nishida Limited. Devi owns 20 percent of the common stock of Nishida. During the current year, Devis salary is 60,000 and he receives a 30,000 bonus. Nishida has taxable income of 200,000 and pays 80,000 in cash dividends. How much gross income does Devi have if a. Nishida is a corporation? b. Nishida is an S corporation?Marilyn owns 1,000 shares of a company at 840 pesos per share. She also owns 10,000 shares of another company at 240 pesos per share. In which company is the total value of her share greater? Explain and defend your answer.Bernie is a shareholder in TimberLane, a calendar year S corporation. At the beginning of the year, his stock basis is $62,000, his share of the AAA is $13,000, and his share of corporate AEP is $38,000. At the end of the year, Bernie receives from TimberLane a $31,000 cash distribution. Bernie's share of S corporation items includes a $10,000 long-term capital gain and a $68,000 ordinary loss. Determine the effects of these events on Bernie's share of the entity's AAA, his stock basis, and TimberLane's AEP. If an item has no effect or an amount is zero, enter "0". Enter amounts as positive numbers. However, use the minus sign to indicate if a " balance" amount is negative. AAA Stock Basis AEP Beginning balance $13,000 $62,000 $38,000 Distribution fill in the blank 1 fill in the blank 2 fill in the blank 3 Balance $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 LTCG fill in the blank 7 fill in the blank 8 fill in the blank 9 Balance $fill…
- Marilyn owns 100% of the stock of Lilac, Inc., with an adjusted basis of $45,000. She receives a cash distribution of $160,000 from Lilac when its earnings and profits are $90,000. A. What is Marilyn’s dividend income? B. What is Marilyn’s recognized gain or loss? c. What is Marilyn’s adjusted basis for her stock after the distribution?Kathleen owns 500 shares of Buda Corporation common stock which was purchased on March 20, 2000, for $48,000. On October 10 of the current year, she receives a distribution of 500 stock rights. Each stock right has a $20 FMV and the FMV of the Buda common stock is $100 per share. With each stock right, she may acquire one share of Buda common stock for $95. a. How much gross income must Kathleen recognize? b. What is the basis of each stock right received? c. If she sells the 500 stock rights for $10,600, what is her gain? d.If she exercises the 500 stock rights on November 10, what is the basis of the 500 shares she receives and when does the holding period for those shares start?Amos and Thomas form the Show Corporation during the current year. Amos owns 40% of Show's stock, Thomas owns 20%, and Arthur owns the remaining 40%. Amos paid $50,000 for his interest, and Thomas paid $25,000. Amos and Thomas are responsible for Show's daily operations and serve as co-chief executive officers. During the current year, Show Corporation has an operating income of $60,000 and pays out $10,000 in dividends. Assume that Show Corporation is organized as an S corporation. In its second year of operations, Show has an operating loss of $40,000 and pays out $20,000 in dividends. On December 31, Amos gives a 10% interest in Show (i.e., ¼ of his interest) to his son, Buddy. At the end of the second year, Amos's adjusted basis is $---- and Buddy's adjusted basis is $f---- in the Show stock.
- John and his following relatives own a total of 80% of S Corporation: Wife, Son, Grandmother, Great Uncle, Grandson, Aunt and Cousin. The other 20% of the S Corporation is owned by 5 unrelated individuals. How many S Corporation shareholders are there for purposes of determining the maximum 100 shareholder rule?Lee owns 100% of the shares in Aerodynamic Limited. Lee’s wife, Sandy, owns 100% of the shares in Biodynamic Limited. Are Aerodynamic and Biodynamic associates? If Sandy doesn't have any shares, does Sandy associated with Aerodynamic Limited?If Lee also has a family trust of which he is the settlor. Is Aerodynamic Limited and the Trust associated?
