Answer is option D
- Tango Corporation must file a revocation statement on or after June 16, 2018, to which the sole shareholder consents.
- If Tango files the revocation before the end of 2018, it can designate a prospective revocation date in 2018 or a later year.
-If Tango files the revocation before march 15, 2019, the revocation takes effect at the beginning of 2019; otherwise, it must be made on a prospective basis.
Tango Corporation, a calendar year taxpayer, has been an S corporation for several years. Tango's business...
Foggy, Inc., a calendar-year corporation that has been in business for 10 years, makes an S corporation election on June 1, 2017. When will the election take effect? A. January 1, 2017 B. June 1, 2017 C. January 1, 2018 D. June 1, 2018
Freddy; a calendar year, cash basis taxpayer; had the following transactions in 2019: He purchased 2,000 shares of General Electric on February 1, 2019. On October 2, 2019, he gave 1,000 shares to his daughter. Just as Freddy expected, GE declared a $2.00 per share dividend on October 15, 2019, which was payable on November 15, 2019 to stockholders of record as of October 10, 2019. Freddy received his dividends on November 15, 2019. He purchased 1,000 shares of Crowley...
Business Entity 9. Which of the following events does not terminate an S corporation election? One of the corporation's 100 shareholders transfers his shares to three unrelated friends. a. b. The corporation issues a nonvoting preferred class of stock that entitles the holder to receive a greater amount on liquidation. 51% of the shareholders must consent to file a c, revocation. d. One of the corporation's 100 shareholders marries and transfers half of her shares to her husband. 10. The...
Freddy; a calendar year, cash basis taxpayer; had the following transactions in 2019: He purchased 2,000 shares of General Electric on February 1, 2019. on October 2, 2019, he gave 1,000 shares to his daughter. Just as Freddy expected, GE declared a $2.00 per share dividend on October 15, 2019, which was payable on November 15, 2019 to stockholders of record as of October 10, 2019. Freddy received his dividends on November 15, 2019. He purchased 1,000 shares of Crowley...
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...
Ben and Jerry decide to incorporate their ice cream business. Allie would also like to be a shareholder in the business. As such, Ben and Allie agree that immediately after the incorporation of the company and the issuance of stock, Ben will sell Allie half of his shares in the company. Ben contributes inventory (FMV $60,000, Basis $30,000), and accounts receivable (FMV $40,000, Basis $40,000) to the corporation for 50% of the stock, and Jerry contributes equipment (FMV $60,000, Basis...
34. The Light Record Corporation has been on the calendar year since its inception five years ago. It wishes to change to an April 30. natural business year. For 2019, the calendar year of proposed change, Light had a taxable income of $200,000, of which $50,000 was earned from January through April. a. What must Light Corporation do to obtain the change in period? When must it do it? b. What is the tax liability for the short year?
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2018 Schedule C reports net profits of $5,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2018. Serena also pays long-term care insurance premiums of $600 in 2018. Calculate Serena’s self-employed health care deduction. $____________ Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has...
2. Smith Corp. has made S - election on the date of its incorporation in year 2012. For the year 2019, Smith has a gross receipt for the year totaling $350,000 of which $100,000 is passive investment income. Expenditures directly connected to the production of the passive income total $35,000. Calculate Smith Corp.’s passive investment income tax (assume the tax rate 21%). Please show all calculations. 3. Tami, a U.S. Citizen, is a sole shareholder of S corporation, named "Happiness"....
Your corporate client wants to issue 100-year bonds . The corporation 's CEO reads The Wall Street Journal regularly and has observed that similar bonds have been issued by several companies, including several Fortune 500 companies. He touts the fact that the interest rate on these bonds is slightly more than that for 30-year U.S. Treasury bonds . In addition, he expresses the belief that interest on the bonds would be deductible, whereas dividends on preferred or common stock would...