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1 ) A corporation has taxable income of $ 5 0 0 , 0 0 0 . What s the corporate income tax liability for

1) A corporation has taxable income of $500,000.
Whats the corporate income tax liability for 2021?
2) A corporation has taxable income of $500,000 before considering life insurance proceeds of $35,000, fines of $30,000, E&P depreciation of $200,000 which is more than $100,000 taxable income depreciation, a federal tax refund of $20,000, $20,000 employee expenses, The company has federal income tax liability of $180,000 What are the firms earnings and profits?
3) A calendar year corporation has current earnings and profits of $150,000 and $200,000 in accumulated earnings and profits. The corporation distributes $450,000 to its sole shareholder.
How much dividend income does the shareholder recognize?
4) Ten individuals each own 1,000 of 10,000 shares of stock outstanding.
One of the individuals wants cash to buy a new car and convinces all of the shareholders to consent to a redemption of 100 shares of stock each. The corporation will repurchase the 1000 total shares of stock using funds it has on hand.
What is the proper tax treatment of this share redemption, from the point of view of the individuals?
5) An investor takes a 10% stake in a large publicly traded corporation and then succeeds in pressuring the board of the company to make various internal changes that should improve the value of the firm.
Later, the investor decides he wants to sell his stock, but he cannot find anyone to buy it as a block. To keep the stock from being sold on the open market and depressing the price, the company agrees to repurchase the investors entire block of stock at a price exceeding his basis.
What is the proper tax treatment of this share redemption, from the point of view of the investor?
6) Sarah Smiles sells her 40% interest in Smiles Inc., an S corporation, to Frankie Frownie on January 31.
Smiles Inc. earned $420,000 from January 1 to January 31 and a total of $2,890,000 from January 1 through December 31(366 days).
Using the daily allocation method, how much income should Sarah Smiles report?

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