Homework Answers
| $ | |
| Taxable income | 1,000,000.00 |
| Less: | |
| Federal income taxes | (210,000.00) |
| Regular tax gain from sale of asset ($150,000 – $100,000) | (50,000.00) |
| E&P loss from sale of asset ($150,000 – $175,000) | (25,000.00) |
| Current E&P | 715,000.00 |
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Problem 7-39 (LO 7-2) Gator Inc. reported taxable income of $1,000,000 this year and paid federal...
7) Orchard, Inc. reported taxable income of $800,000 in 20x3 and paid federal income taxes of...
7) Orchard, Inc. reported taxable income of $800,000 in 20x3 and paid federal income taxes of $272,000. Included in the company's computation of taxable income is gain from sale of a depreciable asset of $200,000. The income tax basis of the asset was $50,000. The E&P basis of the asset using the alternative depreciation system was $75,000. Compute the company's current E&P for 20X3.
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000....
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20x2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current E&P for 20X3 would be: Multiple Choice Ο $1,015,000. Ο $965,000. Ο $675,000. Ο $625,000.
Manistee Corporation reported taxable income of $1,200,000 this year and paid federal income taxes of $408,000....
Manistee Corporation reported taxable income of $1,200,000 this year and paid federal income taxes of $408,000. Not included in the computation was disallowed entertainment expenses of $25,000, tax-exempt interest of $20,000, and a net capital loss of $50,000 incurred this year. Manistee is an accrual basis taxpayer. The corporation’s current earnings and profits this year would be: Multiple Choice $1,200,000 $1,145,000 $787,000 $737,000 Boulder Company reports current E&P of $500,000 this year and accumulated negative E&P at the beginning of...
Comprehensive Problem 7-65 (LO 7-1, LO 7-2, LO 7-3, LO 7-4, LO 7-5) Lance Corporation, an...
Comprehensive Problem 7-65 (LO 7-1, LO 7-2, LO 7-3, LO 7-4, LO 7-5) Lance Corporation, an accrual method corporation, reported taxable income of $1,460,000 this year. Included in the computation of taxable income were the following items: • MACRS depreciation of $200,000. Straight-line depreciation would have been $120,000 • Anet capital loss carryover of $10.000 from last year . Anet operating loss carryover of $25.000 from last year • $65.000 capital gain from the distribution of land to the company's...
Problem 16-44 (LO. 6) HippCo Federal taxable income for the year is $1,000,000. Its operations are...
Problem 16-44 (LO. 6) HippCo Federal taxable income for the year is $1,000,000. Its operations are confined to Oregon and Montana. HippCo generates only business and interest income for the year. Federal cost recovery deductions totaled $200,000. Montana used this amount, but Oregon allowed only $120,000. Interest income of $25,000 from Oregon bonds was excluded from Federal taxable income. Oregon taxes all municipal bond income, while Montana taxes all such interest except that from its own bonds. Interest income from...
The ABC Company reported taxable income of $500,000 in 2018. The company paid $105,000 in federal...
The ABC Company reported taxable income of $500,000 in 2018. The company paid $105,000 in federal taxes for 2018. If you start with taxable income of $500,000 what adjustment will be necessary for the $105,000 for purposes of calculating E&P? a. a $105,000 addition. b. a $105,000 deduction. c. no adjustment. d. none of the above. ABC Company reported taxable income of $500,000 in 2018. This amount does not include a $5,000 nondeductible (for tax purposes) meal expense. If you...
Lanco Corporation, an accrual-method corporation, reported taxable income of $1,830,000 this year. Included in the computation...
Lanco Corporation, an accrual-method corporation, reported taxable income of $1,830,000 this year. Included in the computation of taxable income were the following items: MACRS depreciation of $306,000. Straight-line depreciation would have been $211,000. A net capital loss carryover of $17,800 from last year. A net operating loss carryover of $25,900 from last year. $66,500 capital gain from the distribution of land to the company’s sole shareholder (see below). Not included in the computation of taxable income were the following items:...
Problem 14-65 (LO. 5) Jane and Blair are married taxpayers filing jointly and have 2019 taxable income of $107,000. The...
Problem 14-65 (LO. 5) Jane and Blair are married taxpayers filing jointly and have 2019 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital asset held five years, $2,100 of gain from a capital asset held seven months, and $13,000 of gain from a capital asset held four years. All of the capital assets were stock in publicly traded corporations. Jane and Blair also have qualified dividend income of $3,000. Click here to access the...
Otter Corporation reported taxable income of $360,000 from operations for 20X3. The company paid federal income...
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...
2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term...
2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term capital gain from the sale of real estate of $300,000 and a short term capital loss of $450,000 from the sale of securities. Neither of the last two figures use included in arriving at the $1,000,000 taxable income from operations. a. What is Zeb corporation's taxable income for the year b. Instead of the figures used in the previous questions assume Zed had a...
7) Orchard, Inc. reported taxable income of $800,000 in 20x3 and paid federal income taxes of $272,000. Included in the company's computation of taxable income is gain from sale of a depreciable asset of $200,000. The income tax basis of the asset was $50,000. The E&P basis of the asset using the alternative depreciation system was $75,000. Compute the company's current E&P for 20X3.
Packard Corporation reported taxable income of $1,000,000 in 20X3 and paid federal income taxes of $340,000. Included in the taxable income computation was a dividends received deduction of $5,000, a net capital loss carryover from 20x2 of $10,000 utilized in 20X3, and gain of $50,000 recognized on the collection of cash from an installment sale that took place in 20X1. The corporation's current E&P for 20X3 would be: Multiple Choice Ο $1,015,000. Ο $965,000. Ο $675,000. Ο $625,000.
Comprehensive Problem 7-65 (LO 7-1, LO 7-2, LO 7-3, LO 7-4, LO 7-5) Lance Corporation, an accrual method corporation, reported taxable income of $1,460,000 this year. Included in the computation of taxable income were the following items: • MACRS depreciation of $200,000. Straight-line depreciation would have been $120,000 • Anet capital loss carryover of $10.000 from last year . Anet operating loss carryover of $25.000 from last year • $65.000 capital gain from the distribution of land to the company's...
2. Zeb corporation has taxable income from operation of $1,000,000 for the current year a long-term capital gain from the sale of real estate of $300,000 and a short term capital loss of $450,000 from the sale of securities. Neither of the last two figures use included in arriving at the $1,000,000 taxable income from operations. a. What is Zeb corporation's taxable income for the year b. Instead of the figures used in the previous questions assume Zed had a...
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