A shareholder owns 45% of a S corporation stock for 175 days and 40% of the S corporation's stock for the remainingdays of the tax year (365 day year - not a leap year). If the ordinary income of the S corporation is $100,000, whatwill be the shareholder's share of the ordinary income of the S corporation?

The objective of the question is to calculate the shareholder's share of the ordinary income of the…

Answered: A shareholder owns 45% of a S…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter22: S Corporations

Section: Chapter Questions

Problem 3DQ

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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?
Assume that a corporation has $100,000 of taxable income from operations plus $5,000 of interest income and $10,000 of dividend income. What is the company’s federal tax liability?
This year, the shareholders in Sunflower Company can choose between receiving an additional 1,000 shares of stock or cash of $1000. Sunflower's shareholders will be taxed on the distribution if Sunflower has sufficient E&P. True Or False
Olive Corporation, a calendar year C corporation, owns stock in Blue Corporation and has net operating income of $ 400,000 for the current year. Blue Corporation pays Olive a dividend of $60,000. What amount of dividends received deduction may Olive claim if it owns 45% of Blue Stock (assuming Olive dividends received deduction is not limited by its taxable income)?
Moore Corporation has 400 shares of stock outstanding that are owned equally by four unrelated shareholders. Moore redeems 100 shares from the shareholders as shown below for $600 per share. Each shareholder has a $180 per share basis for his stock. Moore Corporation's current and accumulated E&P at the end of the tax year is $150,000. what are the tax consequences of these redemptions?
Marshall Mathers , a non-resident alien not engaged in trade or business, owns 1,000,000 shares in MWC, Inc. In 2021, MWC declared 20% stock dividends, during which the fair market value of the shares is P1/share. How much is the final tax on the dividends? A.POB.P20,000C.P50,000D.P40,000
Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is $1,000 and he has a $10,000 debt basis associated with a $10,000 loan he made to the S corporation. In 2021, Jamaal's share of S corporation income is $4,000, and he received a $7.000 distribution from the S corporation. How much total income does Jamaal report in 2021 from these transactions? Multiple Choice $0 $4,000 $6,000 $7,000 None of the choices are correct.
Four unrelated shareholders own Benton Corporation's 400 shares of outstanding stock. As indicated below, Benton redeems a total of 100 shares for $500 per share from three of its shareholders. Each shareholder has a $230 per share basis in his or her stock. Benton's current and accumulated earnings and profits (E&P) at the end of the tax year is $150,000. Requirement a. What are the tax consequences (e.g., basis of remaining shares and amount and character of recognized income, gain, or loss) of the redemptions to Ethel, Fran, and Georgia? Ethel Fran Georgia Amount of income, gain, or loss Ethel Fran Georgia Character of income, gain, or loss capital gain Requirement b. How would your answer to Part a change if Ethel were Georgia's mother? Character of income, gain, or loss Amount of income, gain, or loss Basis of remaining shares Basis of remaining shares Shareholder Data Shareholder Ethel Fran Georgia Henry Total Shares Held Before the Redemption 200 100 50 50 400 Shares Redeemed 40…
Q is the sole shareholder of the T Corporation. At the beginning of the current year, Q’s basis in the T stock is $16,000. During the current year, Q receives a distribution of land from the corporation. The land’s tax basis is $10,000 and its fair value is $50,000. Assume a corporate tax rate of 21%. The corporation’s total earnings and profits is $18,000 at year-end, before taking into account any of the effects of the distribution. 1. Calculate T Corporation’s taxable gain, net of tax, if any. 2. Calculate Q's dividend income amount for the year. Show work for partial credit

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