Question

Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent,...

Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 175,000 $ 310,000 Cost of goods sold (60,000 ) (85,000 ) Salary to owners Jack and Jill (40,000 ) (50,000 ) Employee wages (15,000 ) (20,000 ) Depreciation expense (10,000 ) (15,000 ) Miscellaneous expenses (7,500 ) (9,000 ) Interest income (related to business) 2,000 2,500 Qualified dividend income 500 1,000 Overall net income $ 45,000 $ 134,500 a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years.

Homework Answers

Answer #2

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question: Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75...
Question: Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. ... Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 175,000 $ 310,000 Cost of goods sold (60,000 ) (85,000 ) Salary to owners Jack and Jill (40,000 ) (50,000 ) Employee wages...
Question: Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75...
Question: Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. ... Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S corporation) Income Statement December 31, Year 1 and Year 2 Year 1 Year 2 Sales revenue $ 175,000 $ 310,000 Cost of goods sold (60,000 ) (85,000 ) Salary to owners Jack and Jill (40,000 ) (50,000 ) Employee wages...
TCO (F) Sara Inc. is a calendar-year S corporation with four shareholders who each own 25...
TCO (F) Sara Inc. is a calendar-year S corporation with four shareholders who each own 25 shares of stock. All shareholders purchased their stock for $5,000. Mr. D, one of the shareholders, made loans to the corporation of $7,000 and $6,000 on August 1, 2016, and June 15, 2017, respectively. Mr. D also guaranteed Sara’s $20,000 bank loan of $20,000. Sara Inc. had $9,000 ordinary income on December 31, 2016. Both shareholders reported their share of the corporation's income on...
1) Andy, Jim and Dwight are starting a professional paper shredding company, and they are still...
1) Andy, Jim and Dwight are starting a professional paper shredding company, and they are still exploring the pros and cons of the following types of legal entities: C-corporation Limited partnership S-corporation Andy and Jim will each contribute $200,000 in cash in exchange for their ownership interest. Dwight will contribute a warehouse that he owns that will be used to house the shredder machines. The warehouse has an FMV of $290,000 and is encumbered by a $90,000 mortgage. Dwight purchased...
2 . Identify which of the following statements is true: If an S Corporation has no...
2 . Identify which of the following statements is true: If an S Corporation has no accumulated earnings and profits, the amount distributed to a shareholder will not increase the shareholder's basis in the stock        If a C Corporation does not distribute its income to its shareholders, double taxation of the income will occur.        C Corporation operating losses are deductible by the individual shareholders        S Corporation operating losses are never deductible by the individual...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange...
During the current year, Marlene, Nancy and Olive formed a new S Corporation. Solely in exchange for stock, Marlene and Nancy contributed appreciated property, while Olive contributed services. The exchanges of Marlene and Nancy will be nontaxable if: Olive receives 30% of the stock Olive receives 80% of the stock Olive receives 15% of the stock Marlene and Nancy together receive 50% of the stock In June of 2018, Alice acquired her only machine for $30,000 to use in her...
CSU, Inc., is a calendar year S corporation. CSU’s Form 1120S shows nonseparately stated ordinary income...
CSU, Inc., is a calendar year S corporation. CSU’s Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of the CSU stock throughout the year. The following information is obtained from the corporate records. Tax-exempt interest income $ 4,500 Salary paid to Taewon (78,000) Charitable contributions (9,000) Dividends received from a non-U.S. corporation 7,500 Short-term capital loss (9,000) Depreciation recapture income 16,500 Refund of prior state income taxes 7,500 Cost of goods sold ($108,000)...
[59] Gleim #: 17.4.141 We Converted, Inc., elected S corporation status in Year 2, after 10...
[59] Gleim #: 17.4.141 We Converted, Inc., elected S corporation status in Year 2, after 10 years as a C corporation. At the date of conversion, the company had a $50,000 net operating loss (NOL) carryover, which it incurred in Year 1, and a $25,000 capital loss carryover. In Year 5, the company sold a vacant piece of property it owned for 11 years. The sales price of the property was $100,000 and an original cost of $25,000. Given the...
1. Which of the following is not a correct statement regarding the advantage of the partnership...
1. Which of the following is not a correct statement regarding the advantage of the partnership entity form over the C corporation form? a. Partnership income is subject to a single level of taxation; corporate income is double taxed. b. Partners in a general partnership have less personal liability for entity claims than shareholders of a C corporation. c. A partnership typically has easier administrative and filing requirements than does a C corporation. d. Partnerships may specially allocate income and...
Accounting Services, Inc. has two customers. Customer X generates $600,000 in income after direct fixed costs...
Accounting Services, Inc. has two customers. Customer X generates $600,000 in income after direct fixed costs are deducted, and Customer Z generates $580,000 in income after direct fixed costs are deducted. Allocated fixed costs total $1,000,000 and are assigned 40 percent to Customer X and 60 percent to Customer Z. Total allocated fixed costs remain the same regardless of how these costs are assigned to customers. What is the amount of allocated fixed costs to be assigned to Customer Z?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT