Thunder, Inc. has invested in the stock of several corporations and has $500,000 current year operating income before considering dividends received, the DRD, and the charitable contribution deduction: Corporation Dividend Ownership % Incorporated Hail, Inc. $ 52,000 14 Delaware Hurricane Company 17,500 62 France Lightening, Inc. 2,800 41 Utah New Tornado Corporation 131,000 92 Jersey Further, Thunder, Inc. contributed 55,000 to HLT charity. Compute the (1) dividends-received deduction, (2) the charitable contributions deduction, and (3) Thunder's taxable income.

Q: Calculate Sammy's share of Zebra's long-term captial gain

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A:

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

A:

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $260,000 in return…

A:

Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return…

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A: Adjusted tax basis-Land=$381,250

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.