Azure is a C corporation and pays no dividends or salary to Sasha. Azure company has a taxable income of $350000, corporate tax rate is 34%, hence the corporate income tax is $350000 *34% = $119000. Since no dividend is paid, hence there will be no tax consequence of this particular transaction. Exclusion of municipal bond interest is application on C Corporation. Sasha receives no salary or dividend hence she is not currently taxed on any of the corporation's income. b. Azure is a C corporation and distributes $75,000 of dividends to Sasha. Dividend distributions are not deductible, hence there will be no effect of this particular transaction on income tax.
Problem 17-30 (LO. 1) In the current year, Azure Company has $350,000 of net operating income...
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has an interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction for qualified...
Pleas show work! In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for each of the following independent situations. (Ignore the deduction...
I need help with the ones that have the red x next to them Problem 12-14 (LO. 1) In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Azure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket. Based on this information, determine the income tax consequences to Azure Company and...
I need dividends income tax for sasha to complete this question in part b. Problem 3-31 (LO. 1) In the current year, Azure Company has $350.000 of net operating income before deducting any compensation or other payment to its sole owner, Sasha. In addition, Arure has interest on municipal bonds of $25,000. Sasha has significant income from other sources and is in the 37% marginal tax bracket Based on this information, determine the income tax consequences to Azure Company and...
Problem 2-23 (LO. 1) Purple Company has $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten Kirsten is single and she claims the $12,200 standard deduction for 2019. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after tax income for each of the following situations. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the corporate tax...
Problem 2-23 (LO. 1) Purple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. following situations. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate...
Purple Company records $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,200 standard deduction. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2019 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required, carryout intermediate...
urple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...
urple Company has $200,000 in net income for 2020 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,400 standard deduction for 2020. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required,...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability...