Part A
Taxable income from operations |
500000 |
Loss on distribution of land ($75,000 - $125,000) |
0 |
Total taxable income |
500000 |
Federal income tax ($500,000 x 21%) |
$105000 |
Part B
Taxable income |
500000 |
Less: |
|
Federal income tax |
(105000) |
Adjustment for E&P gain on distribution of land |
0 |
Current E&P |
$395000 |
Part C
Current E&P |
395000 |
Less: |
|
E&P basis of land distributed |
(125000) |
Add: |
|
Mortgage assumed by Rocky |
15000 |
CE&P after distribution |
285000 |
Accumulated E&P, beginning of year |
750000 |
Accumulated E&P, ending of year |
$1035000 |
Part D
dividend income= fair market value of the land – liability = 75000-15000 = $60000
Part E
income tax basis = fair market value of the land = $75000
Check my wc Required information [The following information applies to the questions displayed below.] Part 1...
Check my w Required information [The following information applies to the questions displayed below.] Part 1 of 5 Volunteer Corporation reported taxable income of $440,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The land's fair market value was $115,000 and its tax and E&P basis to Volunteer was $20,000. Rocky assumed a mortgage attached to the land of $23,000. The company had accumulated E&P of $774,000 at...
Check my won Required information [The following information applies to the questions displayed below.) Part 1 of 4 10 points Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Eugenia Van Dam. The land's fair market value was $20,000 and its tax and E&P basis to Beaver was $50,000. Eugenia assumed a mortgage on the land of $25,000. Beaver Corporation had accumulated E&P of...
Check my wo Required information [The following information applies to the questions displayed below.] Part 1 of 5 Illini Corporation reported taxable income of $500,000 from operations for this year. During the year, the company made a distribution of an automobile to its sole shareholder, Carly Urbana. The auto's fair market value was $30,000 and its tax basis to Illini was $0. The auto's E&P basis was $15,000. Illini had accumulated E&P of $1,500,000. 10 points eBook a. Compute Illini's...
Check my w Required information [The following information applies to the questions displayed below.] Part 1 of 3 10 This year, Sooner Company reports a deficit in current E&P of ($468,000). Its accumulated E&P at the beginning of the year was $330,000. Sooner distributed $660,000 to its sole shareholder, Boomer Wells, on June 30 of this year. Boomer's tax basis in his Sooner stock is $106,000. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by...
Check my w Required information [The following information applies to the questions displayed below.) Part 1 of 3 10 Jayhawk Company reports urrent E&P of $310,000 and a deficit in accumulated E&P of ($282,500). Jayhawk distributed $505,000 to its sole shareholder, Christine Rock, on the last day of the year. Christine's tax basis in her Jayhawk stock is $128,750. (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) points Skipped a. How...
Otter Corporation reported taxable income of $360,000 from operations for 20X3. The company paid federal income taxes of $141,000 on this taxable income. During the year, the company made a distribution of land to its sole shareholder, Emmet Jugg. The land's fair market value was $52,000 and its tax and E&P basis to Otter was $26,000. Emmet assumed a mortgage attached to the land of $11,700. The company had accumulated E&P of $860,000 at the beginning of the year. Compute...
Check my work Required information [The following information applies to the questions displayed below.] Part 1 of 3 10 points Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold 1,900 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 510 of her shares for $34,500 per share on December 31 of this year. Wilma's income tax basis in each share...
Check my wor Required information [The following information applies to the questions displayed below.] Part 1 of 4 IO Bedrock Inc. is owned equally by Barney Rubble and his wife Betty, each of whom hold 1,100 shares in the company. Betty wants to reduce her ownership in the company, and it was decided that the company will redeem 550 of her shares for $26,100 per share on December 31 of this year. Betty's income tax basis in each share is...
Ozark Corporation reported taxable income of $500,000 from operations for 20X3. During the year, the company made a distribution of land to its sole shareholder, Marcus Twain. The land's fair market value was $100,000 and its tax and E&P basis to Ozark was $125,000. Marcus assumed a mortgage attached to the land of $25,000. Ozark's tax rate is 21%. The company had accumulated E&P of $850,000 at the beginning of the year. Compute Ozark's total taxable income and federal income...
Required information Problem 7-33 (LO 7-2) (The following information applies to the questions displayed below.) Part 1 of 3 - Hawkeye Company reports current E&P of $300,000 this year and accumulated E&P at the beginning of the year of $200,000. Hawkeye distributed $400,000 to its sole shareholder, Ray Kinsella, on December 31 of this year. Ray's tax basis in his Hawkeye stock is $75,000 points Problem 7-33 Part a Print a. How much of the $400,000 distribution is treated as...