A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital Accumulated Earnings - unrestricted Accumulated Earnings - restricted Income tax per annual income tax return Income tax for the first three quarters Final tax on passive income at 20% Capital gains tax at 15% Compute the amount of improperly accumulated earnings tax (IAET). P 10,000,000 8,000,000 2,000,000 300,000 240,000 60,000 45,000
A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following data: Paid-up capital Accumulated Earnings - unrestricted Accumulated Earnings - restricted Income tax per annual income tax return Income tax for the first three quarters Final tax on passive income at 20% Capital gains tax at 15% Compute the amount of improperly accumulated earnings tax (IAET). P 10,000,000 8,000,000 2,000,000 300,000 240,000 60,000 45,000
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 2P
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Transcribed Image Text:8. A closely-held corporation, deemed committed unreasonably accumulating its income, shows the following
data:
Paid-up capital
Accumulated Earnings - unrestricted
Accumulated Earnings - restricted
Income tax per annual income tax return
Income tax for the first three quarters
Final tax on passive income at 20%
Capital gains tax at 15%
Compute the amount of improperly accumulated earnings tax (IAET).
P 10,000,000
8,000,000
2,000,000
300,000
240,000
60,000
45,000
8
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