PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 29AP
To determine
Calculate Incorporation J’s basis in its CFC stock at the beginning of 2021.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
1) During 2022, Matador declared preferred dividends of $70,000, paid $90,000 for
dividends, and received $135,000 for dividends on available-for-sale equity securities.
The bookkeeper did not include any of these when calculating ICO. Determine the
adjustment to ICO. Matador has a corporate tax rate of 30%.
During 2020, Tanso purchased 20,000 shares of Ginto common stock for P315,000 as an equity investment at FVTPL. The fair value of these shares was P300,000 on December 31, 2020. Tanso sold all of the Ginto stock for P17 per share on February 3, 2021, incurring P14,000 in brokerage commissions. Tanso should report a net realized gain/loss on the sale of stocks in 2021 amounting to
. During 2022, ABC Corp. acquired 500 shares of XYZ stock at P30 per share. ABC accounted for the stock as FVOCI financial assets. The market price per share of ABC's stock as of December 31, 2022 and 2023, is P22.50 and P39.50, respectively.
How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, statement of comprehensive income? Use negative sign for the unrealized loss
How much unrealized gain or loss on long-term investments should ABC report on its December 31, 2022, stockholder’s equity? Use negative sign for the unrealized loss
How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, statement of comprehensive income? Use negative sign for the unrealized loss
How much-unrealized gain or loss on long-term investments should ABC report on its December 31, 2023, stockholder’s equity? Use negative sign for the unrealized loss
Chapter 13 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 13 - Why does a corporations state income tax cost...Ch. 13 - Prob. 2QPDCh. 13 - Prob. 3QPDCh. 13 - Prob. 4QPDCh. 13 - Borden Inc. conducts a business that spans four...Ch. 13 - Prob. 6QPDCh. 13 - Prob. 7QPDCh. 13 - Prob. 8QPDCh. 13 - Prob. 9QPDCh. 13 - Prob. 10QPD
Ch. 13 - Prob. 11QPDCh. 13 - Prob. 12QPDCh. 13 - Prob. 13QPDCh. 13 - Prob. 14QPDCh. 13 - Prob. 15QPDCh. 13 - Prob. 16QPDCh. 13 - This year, Mesa Inc.s before-tax income was...Ch. 13 - Prob. 2APCh. 13 - Prob. 3APCh. 13 - Prob. 4APCh. 13 - Prob. 5APCh. 13 - Prob. 6APCh. 13 - Prob. 7APCh. 13 - Prob. 8APCh. 13 - Prob. 9APCh. 13 - Prob. 10APCh. 13 - Prob. 11APCh. 13 - Prob. 12APCh. 13 - Prob. 13APCh. 13 - Prob. 14APCh. 13 - Prob. 15APCh. 13 - Prob. 16APCh. 13 - Prob. 17APCh. 13 - Prob. 18APCh. 13 - Prob. 19APCh. 13 - Prob. 20APCh. 13 - Prob. 21APCh. 13 - Prob. 22APCh. 13 - Prob. 23APCh. 13 - Prob. 24APCh. 13 - Prob. 25APCh. 13 - Prob. 26APCh. 13 - Prob. 27APCh. 13 - Prob. 28APCh. 13 - Prob. 29APCh. 13 - Prob. 30APCh. 13 - Prob. 31APCh. 13 - Prob. 32APCh. 13 - Prob. 33APCh. 13 - Prob. 34APCh. 13 - Prob. 35APCh. 13 - Prob. 36APCh. 13 - Prob. 37APCh. 13 - State E wants to encourage the development of a...Ch. 13 - Prob. 2IRPCh. 13 - Prob. 3IRPCh. 13 - Prob. 4IRPCh. 13 - Prob. 5IRPCh. 13 - Prob. 6IRPCh. 13 - Prob. 7IRPCh. 13 - Prob. 8IRPCh. 13 - Prob. 9IRPCh. 13 - Prob. 10IRPCh. 13 - Prob. 11IRPCh. 13 - Prob. 2RPCh. 13 - Prob. 3RPCh. 13 - Prob. 1TPCCh. 13 - Prob. 2TPCCh. 13 - Prob. 3TPCCh. 13 - Prob. 1CPCh. 13 - Prob. 2CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- ABC Corporation invested in one of DEF's ordinary shares that has a par value of P500 and a market value of P625 on January 1, 2021. The 2020 dividend paid to each shareholder amounted to P120. The dividend rate is not expected to grow, what is the value if the required rate of return is 17%arrow_forwardAmazon LTD reported the following tax attributes for the taxation year ending December 31, 2020. the balance of both refundable dividend tax on hand account at December 31, 2019 was NIL. the company received a portfolio dividend of $18,750. the company paid $112,500 in taxable dividend, all non-eligible, to its shareholders. The refundable portion of part I tax was correctly calculated to be $1,533. Calculate The Dividend Refund for the taxation year 2020. $7,187 $6,450 $1,533 $8,720arrow_forwardAsda Ltd purchased shares of Simon plc. As of 30 June 2019, E50,000 was the Equity-Paid up Capital. Below are the key details: Acquired 10,000 shares on 30h June 2019 at £5 Fair Value of Shares on 30th June 2020 was £8 Fair Value of Shares on 30thJune 2021 was £7 All Shares were Sold on 30h June 2021. Tax Rate is 20%. You are required to Prepare Statement of Comprehensive Income and Statement of Changes in Equity (Both Extracts) for the Year ending 30th June 2021. Also show the Calculation of Gains.arrow_forward
- In 2020, Ace Corporation reports gross income of $200,000 (including $150,000 of profit from its operations and $50,000 in dividends from less-than-20%-owned domestic corporations) and $230,000 of operating expenses. A. What is Ace’s NOL for 2020 B. Assume that Ace expects 2021’s taxable income to be $20,000 and 2022’s taxable income to be $100,000, both before any NOL deduction in the carryover year. What NOL deductions can Ace expect to claim in 2021 and 2022 C. How would your answer to Part b change if, in addition to the 2020 NOL, Ace also had a $5,000 NOL carryover from a loss occurring before 2018?arrow_forwardMang Corporation, a domestic corporation, owns 20% of the outstanding shares of RJ Corporation, a non-resident foreign corporation. On March 1, 2021, it received dividends amounting to P1,000,000. Which statement is subject to income tax? The said dividend has not been used until January 13, 2023 All of the above The said dividend was utilized in 2022 for its dividend payment The said dividend was utilized on June 15, 2022 for its working capital requirementsarrow_forwardAmazon Ltd reported the following tax attributes for the taxation year ending December 31, 2020. The balance of both refundable dividend tax on hand account at December 31,2019 was nil. The company received portfolio dividend of $18,750. The company paid $112,500 in taxable dividend, all non-eligible, to its shareholders. The refundable portion of part I tax was correctly calculated to be $1,533. Calculated the dividend refund for the taxation year 2020.arrow_forward
- &J Corporation has a year-end retained earnings balance of 210000 for 2020. The corporation paid 10000 in dividends in 2020. The corporation's net profit after tax in 2020 was 60000. What was the retained earnings balance at the end of 2019?arrow_forwardDover’s management has decided to declare an additional $220,500 dividend. The date of declaration is December 30, 2021. The date of record will be January 15, 2022, and the date of payment will be January 30, 2022 As an additional signal to the market, Dover’s management repurchased 205,000 shares of Dover’s common stock on December 15, 2021, for $4.00 a share. Dover’s tax rate is 25%. 1. Make the appropriate journal entries, if any, to account for Dover’s extra dividend and stock repurchase (including any necessary changes to income tax expense). 2. What do you think Dover’s creditors’ (i.e. bank and bondholder) reaction will be to management’s decision to issue a second dividend and to repurchase shares? In other words, based on your changes to the financial statements and the change in the ratios, do you think the creditors will be happy with the decision to pay out so much cash to investors? Why or why not 3. At the beginning of 2020, Dover’s Board of Directors authorized stock…arrow_forwardOn January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for P50,000 cash. A company accounts for the investment using the cost method. B's net income for 2021 is P20,000, but it declares no dividends. In 2022 B's net income is P80,000, and it declares dividends of P120,000. What is the correct balance of A's investment in B account at December 31, 2022?arrow_forward
- In January 2021, Janeway Inc. doubled the amount of its outstanding stock by selling on the market an additional 10,000 shares to finance an expansion of the business. You propose that this information be shown by a footnote on the balance sheet as of December 31, 2020. The president objects, claiming that this sale took place after December 31, 2020, and therefore should not be shown. Explain your position.arrow_forwardIn 2019, Avalanche Corporation has $70,000 of net income from operations during the current year. In addition it received $180,000 of dividend income from another corporation in which it has a 10% ownership interest. What is Avalanche’s dividends received deduction for 2019? Question 8 options: a) $0. b) $35,000. c) $90,000. d) $117,000. e) $126,000.arrow_forwardCan you please help me find what amount should be reported as income before tax in the financial statements? 1. The financial statements of Kare-Kare Company for the calendar year ending December 31, 2021 are authorized for issue on March 30, 2022. Income before tax was computed at P50,000,000 before the following events occurred in the company: a. The company had investments in shares held for trading which were recorded at the fair value of P600,000 on December 31, 2021. During the period up to March 1, 2022, there was a steady decline in the fair value of all the shares in the portfolio, and on March 1, 2022, the fair value had fallen to P500,000. b. A customer owing the company P300,000 filed for bankruptcy on February 2, 2022. The company included in its financial statements an allowance for doubtful accountsp ertaining to this customer of P100,000. c. A shipping vessel of the company with a carrying amount of P10,000,000 was destroyed at sea because of the missile fired by the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Operating Loss Carryback and Carryforward; Author: SuperfastCPA;https://www.youtube.com/watch?v=XiYhgzSGDAk;License: Standard Youtube License