Gilberto Fine Painting, Inc., an S corporation, has $20,000 in accumulated earnings and profits from the...
Gilberto Fine Painting, Inc., an S corporation, has $20,000 in accumulated earnings and profits from the years it was a C corporation (before 2018). Its gross receipts for 2018 were $250,000, and its gross receipts for 2019 were $300,000. It expects its gross receipts for 2020 to be $350,000. In 2018, it received $20,000 in dividends, $35,000 in interest, and $10,000 in royalties. In 2019, it received $20,000 in dividends, $35,000 in interest, and $26,000 in royalties. In 2020 it expects to receive $20,000 in dividends, $35,000 in interest, $10,000 in royalties, and $26,000 in rents. Does it have to worry about losing its S status? If so, explain why and what can be done to avoid loss of that status.
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Gilberto Fine Painting, Inc., an S corporation, has $20,000 in
accumulated earnings and profits from the...
The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed...
The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed the following selected financial information for the year 2019: $ · Gross receipts 25,800,000 · Cost of goods sold 21,300,000 · Dividends received (less than 20%-owned) 150,000 · Interest Income 50,000 · Interest Expense 850,000 · Depreciation 575,000 · Other Operating Expenses 1,500,000 XYX is planning a major expansion project for the year 2020 and is in the process securing the needed financing. Financial...
C CORPORATION BOOK-TO-TAX RECONCILIATION. Astro Corporation, an accrual basis, calendar-year C corporation, began o...
C CORPORATION BOOK-TO-TAX RECONCILIATION. Astro Corporation, an accrual basis, calendar-year C corporation, began operations on January 2, 2010. For each item below, determine the 2019 Schedule M-1 adjustment to reconcile book income to taxable income, i.e., the amount and the effect ( + or -). Net income per books $950,000 Provision for Federal income taxes, $240,000 Municipal bond interest, $12,000 During 2019, Astro increased its allowance for uncollectible accounts by $30,000; actual bad debts written off in 2019 were $36,000....
Tax project The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed...
Tax project The Forecast and Budget Department of XYZ Corporation (involved in the retail trade business) has developed the following selected financial information for the year 2019: $ · Gross receipts 25,800,000 · Cost of goods sold 21,300,000 · Dividends received (less than 20%-owned) 150,000 · Interest Income 50,000 · Interest Expense 850,000 · Depreciation 575,000 · Other Operating Expenses 1,500,000 XYX is planning a major expansion project for the year 2020 and is in the process securing the needed...
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)...
2. Smith Corp. has made S - election on the date of its incorporation in year...
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"....
Waterway Corporation has used the accrual basis of accounting for several years. A review of the...
Waterway Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $29.600 net income for 2019 and $39,000 net income for 2020. Further examination of the records reveals that the following items were handled improperly. 1. Rent was received from a tenant in December 2019....
Bridgeport Corporation began operations on January 1, 2017. Recently the corporation has had several unusual accounting...
Bridgeport Corporation began operations on January 1, 2017. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting purposes. The company follows ASPE. You are the CPA for Bridgeport and have been asked to examine the following data: BRIDGEPORT CORPORATION Income Statement For the Year Ended December 31, 2020 Sales revenue $9,700,000 Cost of goods sold 6,020,000 Gross profit 3,680,000 Selling and administrative expense 1,328,000 Income before income tax 2,352,000...
Journalize Entries 38 Points: 30 Minutes stock authorized. During Rowlands Corporation has 100,000 shares of $10 par value it had the following transactions related to its preferred stock. E...
Journalize Entries 38 Points: 30 Minutes stock authorized. During Rowlands Corporation has 100,000 shares of $10 par value it had the following transactions related to its preferred stock. Exercise 1 DATE a) issued 20,000 shares at $55 per share. a) issued 10,000 shares for equipment having a $850,000 asking price. The stock hada of $75 per share Journalize the transactions in the following page On January 1, 2019, the stockholders' stock (S5 par value) $1,500,000; paid-in capital in excess of...
Martinez Corporation began operations on January 1, 2017. Recently the corporation has had several unusual accounting...
Martinez Corporation began operations on January 1, 2017. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting purposes. The company follows ASPE. You are the CPA for Martinez and have been asked to examine the following data: MARTINEZ CORPORATION Income Statement For the Year Ended December 31, 2020 Sales revenue $9,700,000 Cost of goods sold 6,020,000 Gross profit 3,680,000 Selling and administrative expense 1,328,000 Income before income tax 2,352,000...
The Daniels Tool & Die Corporation has been in existence for a little over three years....
The Daniels Tool & Die Corporation has been in existence for a little over three years. The company's sales have been increasing each year as it builds a reputation. The company manufactures dies to its customers' specifications and therefore uses a job-order cost system. Factory overhead is applied to the jobs based on direct labour hours—the absorption-costing (full) method. Over-applied or under-applied overhead is treated as an adjustment to cost of goods sold. The company's income statements and other data...
C CORPORATION BOOK-TO-TAX RECONCILIATION. Astro Corporation, an accrual basis, calendar-year C corporation, began operations on January 2, 2010. For each item below, determine the 2019 Schedule M-1 adjustment to reconcile book income to taxable income, i.e., the amount and the effect ( + or -). Net income per books $950,000 Provision for Federal income taxes, $240,000 Municipal bond interest, $12,000 During 2019, Astro increased its allowance for uncollectible accounts by $30,000; actual bad debts written off in 2019 were $36,000....
Waterway Corporation has used the accrual basis of accounting for several years. A review of the records, however, indicates that some expenses and revenues have been handled on a cash basis because of errors made by an inexperienced bookkeeper. Income statements prepared by the bookkeeper reported $29.600 net income for 2019 and $39,000 net income for 2020. Further examination of the records reveals that the following items were handled improperly. 1. Rent was received from a tenant in December 2019....
Journalize Entries 38 Points: 30 Minutes stock authorized. During Rowlands Corporation has 100,000 shares of $10 par value it had the following transactions related to its preferred stock. Exercise 1 DATE a) issued 20,000 shares at $55 per share. a) issued 10,000 shares for equipment having a $850,000 asking price. The stock hada of $75 per share Journalize the transactions in the following page On January 1, 2019, the stockholders' stock (S5 par value) $1,500,000; paid-in capital in excess of...
Martinez Corporation began operations on January 1, 2017. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting purposes. The company follows ASPE. You are the CPA for Martinez and have been asked to examine the following data: MARTINEZ CORPORATION Income Statement For the Year Ended December 31, 2020 Sales revenue $9,700,000 Cost of goods sold 6,020,000 Gross profit 3,680,000 Selling and administrative expense 1,328,000 Income before income tax 2,352,000...
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