Homework Answers
Answer :-
True is correct answer.
Explanation :-
Cardinal Corporation net profit is $350,000. Net profit is totally allocated to Rajib, as Rajib is the sole shareholder of Cardinal Corporation, and Rajib must reports the $350,000 of income on his Federal income tax return service. The whole Net profit is Rajib profit I.e $350,000 it does not matter how much of the profit was distributed from the Cardinal Corporation to Rajib.
Thus,Rajib report the Cardinal Corporation profit of $350,000 on his Federal income tax return is True.
Add Answer to:
Rajib is the sole shareholder of Cardinal Corporation, a calendar vear S corporation. In the current...
Dan is the sole shareholder of Tristar Corporation, a C corporation. In the current year, Tristar...
Dan is the sole shareholder of Tristar Corporation, a C corporation. In the current year, Tristar earned $350,000 and distributed $75,000 to Dan. Ken is the sole shareholder of Shield Corporation, an S corporation. In the current year, Shield earned $350,000 and distributed $75,000 to Ken. Contrast the tax treatment of Tristar Corporation and Dan with the tax treatment of Shield Corporation and Ken.
Question 7 (2 points) Sean is the sole shareholder of a regular C corporation, and Ben...
Question 7 (2 points) Sean is the sole shareholder of a regular C corporation, and Ben owns a proprietorship. In the current year, both businesses make a profit of $100,000, and each owner withdraws $50,000 from his business. With respect to this information, which of the following statements is incorrect? Sean must report $100,000 of income on his return. Ben must report $100,000 of income on his return. Ben's proprietorship is not required to pay income tax on $100,000. Sean's...
9 Matt, the sole shareholder of Pastel Corporation (a C corporation), has the corporation pay him...
9 Matt, the sole shareholder of Pastel Corporation (a C corporation), has the corporation pay him a salary of $600,000 in the current year. The Tax Court has held that $200,000 represents unreasonable compensation. Matt must report a salary of $400,000 and a dividend of $200,000 on his individual tax return. True False
2. Southern Corporation, a calendar year corporation, was formed 3 years ago by its sole shareholder,...
2. Southern Corporation, a calendar year corporation, was formed 3 years ago by its sole shareholder, Jason, who has operated as an S corporation since its inception. Last year, Jason made a direct loan to the company in the amount of $4,000. Southern Corporation has paid interest on the loan but has not yet paid any principal (Assume the loan qualifies as debt for tax purposes). In year 4, War Eagle Corp experiences a $25,000 ordinary business loss and earns...
Tomas owns a sole proprietorship, and Lucy is the sole sharehalder of a C corporation. In...
Tomas owns a sole proprietorship, and Lucy is the sole sharehalder of a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return. True Ovalse
Problem 19-33 Cardinal Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation...
Problem 19-33 Cardinal Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds a 10% interest. Cardinal also receives interest income of $35,000 from municipal bonds. (The municipality used the proceeds from the bond issue to construct a library.) Cardinal borrowed funds to purchase the municipal bonds and pays $20,000 of interest on the loan. Excluding these three items, Cardinal's taxable income is $500,000. Cardinal has $150,000 of accumulated E & P at...
15. The sole shareholder of an S Corp is active in the business and has a...
15. The sole shareholder of an S Corp is active in the business and has a basis of $5,000 in the stock. The shareholder also has loaned $3,000 to the corporation. The shareholder's information return from the S Corp indicated the shareholder's portion of the loss from ordinary business is $7,000. a) How much if anything can the shareholder deduct on his individual tax return? b) What is the shareholder's basis in the shares at the beginning of the next...
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P...
At the beginning of the year, Myrna Corporation (a calendar year taxpayer) holds E & P of $87,900. The corporation generates no additional E & P during the year. On December 31, the corporation distributes $131,850 to its sole shareholder, Abby, whose stock basis is $26,370. How does the Federal income tax law treat this distribution? As a result the distribution Abby has the following: • Dividend income:_____ $ • Return of capital: _____ $ • Capital gain:_____ $ •...
(CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received...
(CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack? $19,000 $7,000 $12,000 $20,000
During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000,...
During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,00 w much is Sparrow's income tax liability for the year? $32,700 $33,600 $45,650 $62,400 1. Dahlia Corp. was organized and commenced Operations in 1930. At December 1, 2020, Dahlia had accumulated earnings and profits of $9,000 before a dividend declaration and distribution, On Decemb 2 020, Dahlia...
Question 7 (2 points) Sean is the sole shareholder of a regular C corporation, and Ben owns a proprietorship. In the current year, both businesses make a profit of $100,000, and each owner withdraws $50,000 from his business. With respect to this information, which of the following statements is incorrect? Sean must report $100,000 of income on his return. Ben must report $100,000 of income on his return. Ben's proprietorship is not required to pay income tax on $100,000. Sean's...
2. Southern Corporation, a calendar year corporation, was formed 3 years ago by its sole shareholder, Jason, who has operated as an S corporation since its inception. Last year, Jason made a direct loan to the company in the amount of $4,000. Southern Corporation has paid interest on the loan but has not yet paid any principal (Assume the loan qualifies as debt for tax purposes). In year 4, War Eagle Corp experiences a $25,000 ordinary business loss and earns...
Tomas owns a sole proprietorship, and Lucy is the sole sharehalder of a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return. True Ovalse
15. The sole shareholder of an S Corp is active in the business and has a basis of $5,000 in the stock. The shareholder also has loaned $3,000 to the corporation. The shareholder's information return from the S Corp indicated the shareholder's portion of the loss from ordinary business is $7,000. a) How much if anything can the shareholder deduct on his individual tax return? b) What is the shareholder's basis in the shares at the beginning of the next...
(CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack? $19,000 $7,000 $12,000 $20,000
During the current year, Sparrow Corporation, a calendar year C corporation, had operating income of $425,000, operating expenses of $280,000, a short-term capital loss of $10,000, and a long-term capital gain of $25,00 w much is Sparrow's income tax liability for the year? $32,700 $33,600 $45,650 $62,400 1. Dahlia Corp. was organized and commenced Operations in 1930. At December 1, 2020, Dahlia had accumulated earnings and profits of $9,000 before a dividend declaration and distribution, On Decemb 2 020, Dahlia...
Most questions answered within 3 hours.
-
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 1 hour ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 2 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 2 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 2 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 2 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 3 hours ago -
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 2 hours ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 2 hours ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 3 hours ago -
Please answer the question in brief.
Discuss the role of ERP in organizations. Are ERP tools...
asked 2 hours ago -
Discuss the pros and cons of collaborative software such
as SameTime. Does it increase productivity? What...
asked 3 hours ago -
Buying your in-laws a gift because it’s expected is
due to the ____________ motive of gift-giving....
asked 3 hours ago