For 2019 Bagco has gross income of $100,000 and deduction of $160,000 for regular tax purposes....
For 2019 Bagco has gross income of $100,000 and deduction of $160,000 for regular tax purposes.
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What are the tax consequences to Bagco in the current year CY?
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Would the result have any impact on Bagco’s tax liability in the prior year (PY) if it had taxable income in that year of $50,000
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Suppose that for the following year (CY+1) Bagco has taxable income from all activities in that year of 30,000. Assume the tax rate is a flat 21% of taxable income. How much federal tax will Bagco pay in that year?
Homework Answers
In the current year, there will not be any taxable income as the available deductions are more than the Gross Income and hence no tax will be charged.
The results of no taxability on the current income will not have any impact on the taxable income of prior year. The taxable income of prior year should have been taxed in the prior year itself @ 21%
For the following year (CY+1), Taxable income of $30000 should be taxed @ 21% which equals to $6300.
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For 2019 Bagco has gross income of $100,000 and
deduction of $160,000 for regular tax purposes....
For 2019 Annita has gross income of $100,000 and deduction of $160,000 for regular tax purposes....
For 2019 Annita has gross income of $100,000 and deduction of $160,000 for regular tax purposes. What are the tax consequences to Annita in the current year? Would the result have any impact on Annita’s tax liability in the prior year if it had taxable income in that year of $50,000? Suppose that for the following year Annita has taxable income from all activities in that year of 30,000. Assume the tax rate is a flat 21% of taxable income....
7. Zack who is single and takes the standard deduction, has taxable income of $160,000, tax...
7. Zack who is single and takes the standard deduction, has taxable income of $160,000, tax preferences of $30,000 and a regular tax liability of $32,480. What is his AMT? a. $33,670 b. $32,480 c.$ 1,190 d. $ 3,780 e. None is correct
84) Eagle Corporation, a personal holding company, has the following results: Taxable income $200,000 Dividends-received deduction &nbs
84) Eagle Corporation, a personal holding company, has the following results: Taxable income $200,000 Dividends-received deduction 30,000 Excess charitable contributions 10,000 Long-term capital gains 10,000 Federal income taxes 61,000 Calculate the PHC tax. 85) Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return. Operating profit $100,000 Long-term capital gain 80,000 Dividends (20%-owned corporation) 90,000 Interest 100,000 Gross income 370,000 Salaries expense (50,000) General and administrative expense (25,000) Dividends-received deduction (72,000)...
Susie is single and has determined the following tax information for the year: regular gross salary...
Susie is single and has determined the following tax information for the year: regular gross salary - $30,000; customer tips - $1,500 ($1,000 received in her regular paychecks and $500 received in cash directly from customers); cash gift from her Papa - $2,000; interest earned - $20; Federal income tax refund - $600; Traditional IRA contribution - $1,000; personal exemption - $3,950; itemized deductions - $4,900; and standard deduction - $6,200. Using the above facts, what is Susie’s federal taxable...
13-19 Alternative Minimum Tax-Computation. T is single and has taxable income of $56,550 and a regular...
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Jacqueline is an Australian resident for income tax purposes. She has taxable income of $77,000. She...
Jacqueline is an Australian resident for income tax purposes. She has taxable income of $77,000. She has been provided with a receipt for an expense in the amount of $1,000. This expense will constitute a deduction. How much tax will Jacqueline save for the 2019/20 income year as a result of the allowable deduction?
Compute MV Corp. 2019 taxable income given the following info relating to its year 1 activities....
Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
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Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
Income = $30,000 Income = $100,000 Income = $400,000 Tax Schedule Taxable Marginal Taxable Taxable Tax...
Income = $30,000 Income = $100,000 Income = $400,000 Tax Schedule Taxable Marginal Taxable Taxable Tax liability income Tax liability Income Income Range Income Rate Tax liability o 10 00 0 %|| 10,000| 0| 10,000 oll 10.000 10,000 20,000 10% 1000 10,000 20,000 40,000 15% 1500 10,000 40,000/ 80,000 20% O 80,000 160,000 30% 0 0 160,000 320,000 35% 0 0 320,000 + 40% 0 Total Liability Total Liability Total Liability Average Tax Rate Average Tax Rate Average Tax Rate
Taxable Income and Total Tax Liability are in thousands. Ranges of Adjusted Gross Income Item Under...
Taxable Income and Total Tax Liability are in thousands. Ranges of Adjusted Gross Income Item Under $15,000 $15,000 to under $30,000 $30,000 to under $50,000 $50,000 to under $100,000 $100,000 to under $200,000 $200,000 or more Number of returns 33,998,665 29,548,721 27,127,608 34,537,027 20,094,853 7,788,785 Taxable income $ 21,439,540 $ 213,668,669 $ 578,082,715 $ 1,661,992,914 $ 2,055,707,167 $ 3,408,931,866 Total tax liability $ 1,891,136 $ 18,881,170 $ 59,565,261 $ 218,856,282 $ 343,280,695 $ 945,200,723 Average tax rate* 8.82 % 8.84...
Katie (single) has 2019 regular taxable income of $375,000, resulting in a regular tax liability of...
Katie (single) has 2019 regular taxable income of $375,000, resulting in a regular tax liability of $106,445. She has negative AMT adjustments of $45,000 and AMT preference items of $1,000. How much AMT does Katie owe in 2019?
13-19 Alternative Minimum Tax-Computation. T is single and has taxable income of $56,550 and a regular tax liability of $8,380.50 for the current year. T uses the standard deduction for regular tax purposes and has $60,000 of positive adjustments (excluding the adjustment for the standard deduction) for AMT purposes. a. Determine T's tentative minimum tax and her AMT. b. Determine the amount that T actually has to pay the IRS this year.
Compute MV Corp. 2019 taxable income given the following info
relating to its year 1 activities. Also, compute MV’s Schedule M-1
assuming that MV’s federal income tax expense for book purposes is
$100,000.
Gross profit from inventory sales of $500,000 (no book–tax
differences)
Dividends MV received from 25 percent-owned corporation of
$100,000 (assume this is also MV’s pro rata share of the
distributing corporation’s earnings).
Expenses other than DRD, charitable contribution, and
net operating loss (NOL), are $350,000 (no book–tax...
Income = $30,000 Income = $100,000 Income = $400,000 Tax Schedule Taxable Marginal Taxable Taxable Tax liability income Tax liability Income Income Range Income Rate Tax liability o 10 00 0 %|| 10,000| 0| 10,000 oll 10.000 10,000 20,000 10% 1000 10,000 20,000 40,000 15% 1500 10,000 40,000/ 80,000 20% O 80,000 160,000 30% 0 0 160,000 320,000 35% 0 0 320,000 + 40% 0 Total Liability Total Liability Total Liability Average Tax Rate Average Tax Rate Average Tax Rate
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