When can the accumulated earnings tax potentially be assessed by the IRS? a. When the Corporation's...
When can the accumulated earnings tax potentially be assessed by the IRS? a. When the Corporation's accumulated earnings exceed $1 million, and the corporation cannot demonstrate economic need for the excess accumulated earnings, b. When the corporation's accumulated earnings exceed $50 million, and the corporation cannot demonstrate economic need for the excess accumulated earnings, c. When the corporation's accumulated earnings exceed $500,000, and the corporation cannot demonstrate economic need for the excess accumulated earnings, d. When the corporation's accumulated earnings exceed $250,000 (or $150,000 for a PSC), and the corporation cannot demonstrate economic need for the excess accumulated earnings
Homework Answers
Answer - (d) -When the corporation's accumulated earnings exceed $250000 (or $150000 for a PSC), and the corporation cannot demonstrate economic need for the excess accumulated earnings.
Accumulated earning tax is levied by federal government in cases where accumulated earnings seems unreasonable and excess. Due to this, company tend to distribute dividend intead of end up paying accumulated earnings tax.
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When can the accumulated earnings tax potentially be assessed by the IRS? a. When the Corporation's...
Determine whether the following statements about the accumulated eangstax are true or false a. Before the...
Determine whether the following statements about the accumulated eangstax are true or false a. Before the IRS can impose the accumulated earnings tax, it need only show that tax avoidance was one of b. Long-term capital gains are included in the accumulated earnings tax base Select the appropriate answer below the motives for the corporation's unreasonable accumulation of earnings Select true/false Each corporate member of a controlled group can claim a separate $150,000 or $250,000 accumulated earnings credit. A dividends-paid...
6. The personal holding company penalty tax rate is A) 20%. B) 10%. C) 15%. D)...
6. The personal holding company penalty tax rate is A) 20%. B) 10%. C) 15%. D) 35% 7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI). B) Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI). Ramirez Corporation is a personal holding company. Its taxable income for this year is...
Thanks For your HELP!!! 13. When computing the accumulated earnings tax, the dividends-paid deduction is not...
Thanks For your HELP!!! 13. When computing the accumulated earnings tax, the dividends-paid deduction is not available for A) dividends paid during the tax year. B) throwback dividends. C) stock dividends. D) All of the above are deductible. 15. When computing the accumulated earnings tax, which of the following is not a reduction to arrive at accumulated taxable income? A) accumulated earnings credit B) NOL deduction claimed C) accrued federal income taxes D) dividends-paid deduction
4. In determining accumulated taxable income for the purpose of the accumulated earnings tax, which one...
4. In determining accumulated taxable income for the purpose of the accumulated earnings tax, which one of the following is allowed as a deduction? A) excess charitable contributions B) dividends-received deduction C) net operating loss deduction D) net capital loss for the current year
Which of the following is not true regarding any corporate AMT credit carryovers that existed at...
Which of the following is not true regarding any corporate AMT credit carryovers that existed at the end of 2017? a.$The corporate AMT credit carryovers do not expire. b.The corporate AMT credit carryovers cannot be used to offset tax liability generated in 2018 and thereafter. c.The corporate AMT credit carryovers can generate a refundable credit of 50% of any unused AMT credits. d.All of these items listed are true. At December 31, 2018, Caswell Corporation had the following items regarding...
7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when comp...
7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI). B) Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI). C) Ramirez Corporation is a personal holding company. Its taxable income for this year is $75,000. The corporation's charitable contributions are $10,000 greater than its income tax charitable contribution deduction limitation....
Udall Corporation's post-closing trial balance at December 31, 2019, was as follows: Debit Credit Accounts Payable...
Udall Corporation's post-closing trial balance at December 31, 2019, was as follows: Debit Credit Accounts Payable $290,000 Accounts Receivable $550,000 Accumulated Depreciation-Building and Equipment 200,000 Additional Paid-in Capital-on Common Stock 1,560,000 Additional Paid-in Capital from Treasury Stock 250,000 Allowance for Doubtful Accounts 30,000 Bonds Payable 400,000 Building and Equipment 1,100,000 Cash 220,000 Common Stock ($1 par value) 150,000 Dividends Payable on Preferred Stock 4,000 Inventories 620,000 Land 380,000 Available-for-Sale Investments 285,000 Trading Investments 215,000 Preferred Stock ($50 par value) 500,000...
If you can please provide an explanation, I'll make sure to upvote, thanks! Sutton Inc.'s underlying...
If you can please provide an explanation, I'll make sure to
upvote, thanks!
Sutton Inc.'s underlying economic reality is a perfectly stable business that began in Year 0 (see excel Drill 5 Accruals.xlsx D). Every year, they generate $500,000 in sales, half of which are in cash, the other half are credit sales that are collected the following year. All other items of revenue and expense (including tax expense) are identical each year (see Years 1 and 2 in excel)....
1. Which of the following actions cannot be used to eliminate a possible personal holding company...
1. Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father? A) Sell additional stock to other family members. B) Make a cash distribution within 2 1/2 months of the end of the tax year. C) Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed. D) Liquidate the corporation....
12. When using the Bardahl formula, an increase in accounts payable (while holding purch holding purchases and oper...
12. When using the Bardahl formula, an increase in accounts payable (while holding purch holding purchases and operating expenses constant) has which of the following effects on the working capital requirements? A) decrease B) increase C) no effect D) increase, decrease, or no effect, depending on other factors 13. When computing the accumulated earnings tax, the dividends-paid deduction is not available for A) dividends paid during the tax year. B) throwback dividends. C) stock dividends. D) All of the above...
Determine whether the following statements about the accumulated eangstax are true or false a. Before the IRS can impose the accumulated earnings tax, it need only show that tax avoidance was one of b. Long-term capital gains are included in the accumulated earnings tax base Select the appropriate answer below the motives for the corporation's unreasonable accumulation of earnings Select true/false Each corporate member of a controlled group can claim a separate $150,000 or $250,000 accumulated earnings credit. A dividends-paid...
6. The personal holding company penalty tax rate is A) 20%. B) 10%. C) 15%. D) 35% 7. Identify which of the following statements is false. A) The 65% dividends-received deduction can be claimed when computing a corporation's undistributed personal holding company income (UPHCI). B) Rental expenses in excess of rental income are added back to taxable income to arrive at personal holding company income (PHCI). Ramirez Corporation is a personal holding company. Its taxable income for this year is...
Udall Corporation's post-closing trial balance at December 31, 2019, was as follows: Debit Credit Accounts Payable $290,000 Accounts Receivable $550,000 Accumulated Depreciation-Building and Equipment 200,000 Additional Paid-in Capital-on Common Stock 1,560,000 Additional Paid-in Capital from Treasury Stock 250,000 Allowance for Doubtful Accounts 30,000 Bonds Payable 400,000 Building and Equipment 1,100,000 Cash 220,000 Common Stock ($1 par value) 150,000 Dividends Payable on Preferred Stock 4,000 Inventories 620,000 Land 380,000 Available-for-Sale Investments 285,000 Trading Investments 215,000 Preferred Stock ($50 par value) 500,000...
If you can please provide an explanation, I'll make sure to
upvote, thanks!
Sutton Inc.'s underlying economic reality is a perfectly stable business that began in Year 0 (see excel Drill 5 Accruals.xlsx D). Every year, they generate $500,000 in sales, half of which are in cash, the other half are credit sales that are collected the following year. All other items of revenue and expense (including tax expense) are identical each year (see Years 1 and 2 in excel)....
1. Which of the following actions cannot be used to eliminate a possible personal holding company tax liability involving a corporation owned by a mother and a father? A) Sell additional stock to other family members. B) Make a cash distribution within 2 1/2 months of the end of the tax year. C) Make a deficiency distribution within 90 days of the date on which the IRS determines that a personal holding company liability is owed. D) Liquidate the corporation....
12. When using the Bardahl formula, an increase in accounts payable (while holding purch holding purchases and operating expenses constant) has which of the following effects on the working capital requirements? A) decrease B) increase C) no effect D) increase, decrease, or no effect, depending on other factors 13. When computing the accumulated earnings tax, the dividends-paid deduction is not available for A) dividends paid during the tax year. B) throwback dividends. C) stock dividends. D) All of the above...
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