Question

ACCOUNTING TAX 1. Donor Corporation had the following income and deductions for last year: Sales $5,000...

ACCOUNTING TAX

1. Donor Corporation had the following income and deductions for last year:

Sales $5,000
Cost of sales 3,500,000
Other operating expenses 800,000
Dividends(from 5% owned domestic corporations) 100,000

Donor Corporation also made contributions (not included above) to qualifying charitable organizations of $175,000. Determine Donor Coporation's taxable income for the year.

2. Barbara sells an asset to her wholly-owned corporation. The asset has a basis of $32,000 and a fair market value at the time of the sale of $27,000. What is the corporation's recognized gain or loss if it sells the asset for $30,000 several years later?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) taxable income = $650000

Sales 5000000
Dividend 100000
Gross income 5100000
- COGS 3500000
Gross profit 1600000
Operating expenses 800000
AGI 800000
Charitable deduction 80000
DRD 70000
TAXABLE INCOME 650000

2)Corporations adjusted basis = $27,000

Since they are related taxpayers the loss of $5,000 is not recognized or realized when Barbara sells the asset to the company.

When the corporation sells the asset they can reduce the gain that they would have hadto recognize by the loss that was disallowed earlier so they would have $0.00 recognized gain

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In Year 1, Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable...
In Year 1, Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable organizations during the current tax year. The corporation has net operating income of $145,000, before deducting the contributions, and dividends received from domestic corporations (ownership in all corporations is less than 20 percent) in the amount of $25,000. a. What is the amount of Citradoria Corporation's allowable deduction for charitable contributions for Year 1? $ b. In Year 2, Citradoria contributes $5,000 to charitable...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services $200,000 Wages, cost recovery and other expenses 180,000 Dividend income from at least 20 percent owned U.S. corporations 40,000 Net operating loss carryover 20,000 Capital losses 10,000 Charitable contribution carryover 7,000 Current charitable contributions 11,000 What is Robots's charitable contribution deduction? How much of the charitable contribution carryover is used up? What is taxable income? What is the dividends-received deduction?
89) During the current tax year, Frank Corporation generated gross income of $1,900,000 and had ordinary...
89) During the current tax year, Frank Corporation generated gross income of $1,900,000 and had ordinary and necessary deductions of $1,400,000. What is the amount of Frank Corporation's corporate income tax for the year? 90) During the current tax year, Charlie Corporation generated gross income of $1,800,000 and had ordinary and necessary deductions of $1,300,000, resulting in taxable income of $500,000. If Charlie Corporation paid qualifying dividends of $200,000 to shareholders, all of whom are in the 25% marginal tax...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services...
Robots, Inc. reports the following financial data for last year: Gross income from sales and services $200,000 Wages, cost recovery and other expenses 180,000 Dividend income from at least 20 percent owned U.S. corporations 40,000 Net operating loss carryover 20,000 Capital losses 10,000 Charitable contribution carryover 7,000 Current charitable contributions 11,000 CITE CODE SECTION AND SHOW WORK (a.) What is Robots's charitable contribution deduction? (b.) How much of the charitable contribution carryover is used up? (c.) What is taxable income?...
Kristi Corporation, a calendar-year, accrual-basis corporation had net income per the books of $850,000 for the...
Kristi Corporation, a calendar-year, accrual-basis corporation had net income per the books of $850,000 for the current year. Included in this number were the following items:                         Federal income taxes                                                    $200,000                         Interest income on U.S. treasury bonds                          26,000                         Interest income on municipal bonds                                  22,000                         Charitable contribution in excess of 10% limitation                 4,000                         Tax penalty assessed by IRS                                                         1,000                         Capital loss on sale of land (no other capital asset sales)       3,000                         Business entertainment expense                                             20,000 MACRS depreciation in excess of book depreciation is $5,000....
29. (Objs. 2 and 3) A corporation has the following income and deductions in 2019 Included...
29. (Objs. 2 and 3) A corporation has the following income and deductions in 2019 Included in these amounts are $290,000 of income and $42,000 of taxable wages reported on Form W-2 . Commute the corporation’s taxable income, tax liability, and any carryovers to others tax years. Gross sales                                                                   $ 830,000 Long-term capital gains                                               $   15,000 Dividend income (33% ownership in the stock)         $   60,000 Interest income                                                            $   70,000 Costs of goods sold                                                      $ 444,000 Other business expenses                                              $ 260,000...
90) During the current tax year, Charlie Corporation generated gross income of $1,800,000 and had ordinary...
90) During the current tax year, Charlie Corporation generated gross income of $1,800,000 and had ordinary and necessary deductions of $1,300,000, resulting in taxable income of $500,000. If Charlie Corporation paid qualifying dividends of $200,000 to shareholders, all of whom are in the 25% marginal tax bracket, what is the total tax paid on both corporate income and the corporate dividends?
34. Which of the following items is a temporary difference between tax income and financial accounting...
34. Which of the following items is a temporary difference between tax income and financial accounting income? A) production activities deduction B) proceeds on life insurance on a key executive C) dividends-received deduction D) depreciation      35. Omron Corporation has the following income and expenses for the tax year: Gross profit on sales: $150,000 Expenses: 500,000 Dividends received from less-than-20%-owned domestic corporations: 50,000 What is Omron's net operating loss? A) $500,000 B) $494,000 C) $325,000 D) $300,000 36. Identify which of...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition,...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition, Trail has a net capital loss of $30,000. Trail's taxable income is $50,000 $20,000 $140,000 $60,000 Burt and Tiffany form Owl Corporation. Burt transfers property (basis of $20,000 and fair market value of $130,000), while Tiffany agrees to serve as Owl’s manager for one year. Each receives 100 shares of Owl Corporation stock. The value of Tiffany’s services for one year is $130,000. Which...
Compute HC Inc.’s current-year taxable income given the following information relating to its 2019 activities. Also,...
Compute HC Inc.’s current-year taxable income given the following information relating to its 2019 activities. Also, compute HC’s Schedule M-1 assuming that HC’s federal income tax expense for book purposes is $30,000. Use Exhibit 16-6. Gross profit from inventory sales of $310,000 (no book–tax differences). Dividends HC received from 28 percent-owned corporation of $120,000 (this is also HC’s pro rata share of the corporation’s earnings). Expenses other than DRD, charitable contribution (CC), and net operating loss (NOL), are $300,000 (no...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT