Mr. Cauzone decided to wind-up his Company on 12/3 After selling all assets and settling all liabilities, there's $122,000 of Cash left in the Company. Mr. Cauzone owns all the shares of the Company with ACB of $7,000. He has come to you for advice and provided the following balances: PUC $2,000 CSOH $5,000 CDA $48,000 GRIP $24,000 Assuming Mr. Cauzone has no other income, calculate his Federal taxes payable / refundable for 2022, based on above.

Mr. Cauzone decided to wind-up his Company on 12/3 After selling all assets and settling all liabilities, there's $122,000 of Cash left in the Company. Mr. Cauzone owns all the shares of the Company with ACB of $7,000. He has come to you for advice and provided the following balances: PUC $2,000 CSOH $5,000 CDA $48,000 GRIP $24,000 Assuming Mr. Cauzone has no other income, calculate his Federal taxes payable / refundable for 2022, based on above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is accounted as Financial Assets Through Profit or Loss and has a carrying value of P3,300,000. X Corporation declared a 10% stock dividend but gave the investors the option to receive P210 per whole stock of dividend. How much cash will Sandy receive? In your solutions, show the journal entry to record the dividends if Sandy opted to receive cash.
Lynch joined an investment club when he got his first job at the accounting firm after he passed his CPA exam. The investment club was actually an LLC and the club did really well. After 10 years, his 5% membership interest in Box-Call, LLC was worth $200,000 and his basis was only $40,000. The club only holds marketable securities. Lynch is tired of going to the weekly meetings of the investment club and has arranged a trade of his interest in Box-Call, LLC with a friend for a 50% interest in Live Decoy, LLC, and up and coming wine distillery. The friend's basis in Live Decoy, LLC was $100,000 and it was valued at $200,000. Are there any tax consequences to Lynch?
Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. Ignore income taxes. What effect did this dividend have on Turner's 2024 financial statements? Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). If there is no effect to an element of the financial statements, select "No effect".
8 Kong operate a distribution firm with a margin of 1 / 3. At the end of May he had sales of $900,000 and purchases of $550,000. His stock at start of the year was $260,000. At the end of May a firm at the firm destroyed most of his stock. On hand was a salvaged amount of $84,000. What was the value of the stock that was destroyed? $29,667 $126,000 $210,000 $294,000
Parch Inc. and Rees Urch, Parch's former head of R&D, formed Sede Inc., which will perform research and development. Sede issued 10,000 shares of common stock to Urch, who is now Sede's president. Parch lent $800,000 to Sede for initial working capital in return for a note receivable that can be converted at will into 100,000 shares of Sede's common stock. Parch also granted Sede a line of credit of $1,000,000. Is consolidation appropriate for Parch and Sede? Explain and justify your answer. What would Parch accomplish with this arrangement? If consolidation were not appropriate, what serious reporting issue exists regarding Parch's separate financial statements?
Axel bought $13, 539 worth of stock on margin. The initial margin was 75% and the maintenance margin was 22 %. Actual margin decreased to 16%. Axel deposited enough cash to raise the margin to 35 %. Rounded to the nearest penny, how much cash did Axel deposit? Correct Answer: 1, 177.84
Your eccentric Aunt Claudia has left you $50,000 in BP shares plus $50,000 cash. Unfortunately, her will requires that the BP stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks shown below. BHP Billiton BP Siemens Nestlé Sony Sanofi Agricultural Bank Standard deviation, % Agricultural BHP Billiton BP 1.00 Siemens Nestlé Sony Sanofi Bank 0.44 0.21 -0.05 0.21 0.15 0.24 1.00 0.40 0.24 0.27 0.36 0.27 1.00 0.26 0.33 0.29 0.21 1.00 0.34 0.27 -0.06 1.00 0.27 0.35 1.00 0.17 1.00 26.2 22.8 22.5 13.6 27.6 17.5 25.5 a. Calculate the portfolio variance for seven different portfolios. Note: Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answers as a decimal rounded to 5 places. b. What is the safest attainable portfolio under these restrictions? Complete this question by entering your answers in the tabs below. Required A Required B Calculate the portfolio variance for seven different portfolios.…
Please help me
X, owns an idle land worth 1M. X works in MCDO as an accounting manager. He decided to exchange the land to shares of stocks of MCDO, a domestic corp. for 10,000 shares with value of 1.2M. As a result, X obtains control, having 90% interest, in the corporation. What is the CGT? a. 6% of 1.2M b. 6% of 200,000 c. 6% of 1M d. None of the above
Karl Stick is president of Stock Company. He also owns 100 percent of its stock. Karl's salary is $220,000. At the end of the year, Karl was paid a bonus of $100,000 because the firm had a good year. Stock Company deducted $320,000 as compensation expense for the year. Upon audit, $100,000 of the deduction was disallowed. How could this happen? How would you advise Stock Company?
Bruce buys $9,000 of Sketchy Corporation stock. Unfortunately, a major newspaper reveals the very next day that the company is being investigated for accounting fraud, and the stock price falls by 62%. What is the percentage increase now required for the value of Bruce's stock to get back to what he paid for it?
rr