Homework Answers
Answer to a.
Z Corp will account 12000 as cash dividend received &
T will account 12000 as property dividend are recorded at fair market value
Answer to b.
T will account 12000 as cash dividend received &
Z Corp will account 12000 as property dividend are recorded at fair market value
Answer to c.
X Corporation needs to pay tax on dividend distribution considering the printing press at adjusting basis (cost basis) and not at fair market value. So total dividend to be considered for tax purpose is 17000 (12000+5000)
Answer to d.
Earning will be reduced by the total dividend of 17000 (12000+5000)
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Question 34
20-34 Cash and Property Dividends. X Corporation is owned by T (an individual) and...
Mr. Z owned 200 shares of Corporation K common stock. During the current year, Mr. Z...
Mr. Z owned 200 shares of Corporation K common stock. During the current year, Mr. Z received distributions from Corporation K of $600 in cash dividends, 100 additional shares of K's common stock, and rights to purchase 100 more shares. The distributions were not disproportionate and the shareholders were not given an option to receive cash instead of the stock and stock rights. The fair market value of the total stock dividend shares and the total stock rights were $200...
XYZ Corporation distributed to its shareholders a total of $30,000 in cash plus property that had...
XYZ Corporation distributed to its shareholders a total of $30,000 in cash plus property that had a fair market value of $80,000 and a basis of $60,000. The corporation’s earnings and profits were $100,000 on the last day of the year in which the distribution was made after taking into effect the impact on the corporation’s earning and profits of the gain recognized on the distribution (but before reducing earnings and profits by the fair market value of the distribution)....
Problem 13-21 (LO. 1, 3) Black Corporation and Tom each own 50% of Tan Corporation's common...
Problem 13-21 (LO. 1, 3) Black Corporation and Tom each own 50% of Tan Corporation's common stock. On January 1, Tan holds a deficit in accumulated E & P of $200,000. Its current E & P is $90,000. During the year, Tan makes cash distributions of $40,000 each to Black and Tom. Click here to view the Dividend Received Deduction Table. a. Complete the statements below that outline how the two shareholders are taxed on the distribution. Black Corporation has...
QueSLIUI U72 points X Corporation has book income before taxes of $600,000 and you are provided...
QueSLIUI U72 points X Corporation has book income before taxes of $600,000 and you are provided with the following information for the year: • Included dividends from a 20% owned Sub $100,000 • Tax Exempt Municipal Interest $160,000 • Depreciation: Per Books $100,000 Tax $200,000 Compute Taxable income for the year. 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...
Can anybody provide clear instructions of this question？ #10 V Corporation receives 10,000 in dividends from...
Can anybody provide clear instructions of this question？
#10 V Corporation receives 10,000 in dividends from each of corporations listed below. How much is V's 10,000 dividends received deduction in each case? a. b, c. d. e. L Corporation-a domestic corporation owned 10% by V Q Corporation-a foreign corporation owned 5% by V T Corporation-a domestic corporation owned 40% by V X Corporation-a domestic corporation owned 90% by V J Corporation-a foreign corporation owned 15% by V
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...
Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend...
Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend of $375,000 on a corporation's common stock are October 1, November 7, and December 15. Journalize the entries required on each date. If no entry is required, choose "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank Oct. 1 Cash Dividends 335,000 X Cash Dividends Payable 335.000 X Nov. 7 0 No...
Amy and Ben plan to organize X Corporation to engage in the construction business. Amy will...
Amy and Ben plan to organize X Corporation to engage in the construction business. Amy will contribute a truck with a basis of $50,000 and a fair market value of $150,000 and a power shovel with a basis of $125,000 and a fair market value of $100,000 in exchange for 20 shares of voting common stock. Ben will contribute $100,000 in cash and undeveloped land, previously held as an investment, having a basis of $20,000 and a fair market value...
1. What is the date of the statute of limitations if a taxpayer files a Form...
1. What is the date of the statute of limitations if a taxpayer files a Form 1040X(Amended US Individual Income Tax Return) on March 15,2016after having filed his 2014 Form 1040( US Individual Income Tax Return) on February 3, 2015? ob a. April 15,2017 b. March 15.2019 c. March 15, 2018 d. February 3,2018 e. April 15,2018 2. New Corporation was organized and began active business on July 1, 2017. New incurred the following expenses in connection with opening the...
Question 8 (2 points) X Corporation has book income before taxes of $600,000 and you are...
Question 8 (2 points) X Corporation has book income before taxes of $600,000 and you are provided with the following information for the year: • Included dividends from a 20% owned Sub $100,000 • Tax Exempt Municipal Interest $160,000 • Depreciation: Per Books $100,000 Tax $200,000 Compute Taxable income for the year. Question 10 (2 points) Z corporation's calendar year taxable income is $2,000,000. The corporation's 2020 federal income tax liability before any credits is: Question 17 (2 points) During...
Mr. Z owned 200 shares of Corporation K common stock. During the current year, Mr. Z received distributions from Corporation K of $600 in cash dividends, 100 additional shares of K's common stock, and rights to purchase 100 more shares. The distributions were not disproportionate and the shareholders were not given an option to receive cash instead of the stock and stock rights. The fair market value of the total stock dividend shares and the total stock rights were $200...
Problem 13-21 (LO. 1, 3) Black Corporation and Tom each own 50% of Tan Corporation's common stock. On January 1, Tan holds a deficit in accumulated E & P of $200,000. Its current E & P is $90,000. During the year, Tan makes cash distributions of $40,000 each to Black and Tom. Click here to view the Dividend Received Deduction Table. a. Complete the statements below that outline how the two shareholders are taxed on the distribution. Black Corporation has...
QueSLIUI U72 points X Corporation has book income before taxes of $600,000 and you are provided with the following information for the year: • Included dividends from a 20% owned Sub $100,000 • Tax Exempt Municipal Interest $160,000 • Depreciation: Per Books $100,000 Tax $200,000 Compute Taxable income for the year. 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...
Can anybody provide clear instructions of this question？
#10 V Corporation receives 10,000 in dividends from each of corporations listed below. How much is V's 10,000 dividends received deduction in each case? a. b, c. d. e. L Corporation-a domestic corporation owned 10% by V Q Corporation-a foreign corporation owned 5% by V T Corporation-a domestic corporation owned 40% by V X Corporation-a domestic corporation owned 90% by V J Corporation-a foreign corporation owned 15% by V
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...
Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend of $375,000 on a corporation's common stock are October 1, November 7, and December 15. Journalize the entries required on each date. If no entry is required, choose "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank Oct. 1 Cash Dividends 335,000 X Cash Dividends Payable 335.000 X Nov. 7 0 No...
1. What is the date of the statute of limitations if a taxpayer files a Form 1040X(Amended US Individual Income Tax Return) on March 15,2016after having filed his 2014 Form 1040( US Individual Income Tax Return) on February 3, 2015? ob a. April 15,2017 b. March 15.2019 c. March 15, 2018 d. February 3,2018 e. April 15,2018 2. New Corporation was organized and began active business on July 1, 2017. New incurred the following expenses in connection with opening the...
Question 8 (2 points) X Corporation has book income before taxes of $600,000 and you are provided with the following information for the year: • Included dividends from a 20% owned Sub $100,000 • Tax Exempt Municipal Interest $160,000 • Depreciation: Per Books $100,000 Tax $200,000 Compute Taxable income for the year. Question 10 (2 points) Z corporation's calendar year taxable income is $2,000,000. The corporation's 2020 federal income tax liability before any credits is: Question 17 (2 points) During...
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