Question
1) In 2021, Fenton Corporation's taxable income was $60,000. Federal income taxes paid was $3,000. Excess of accelerated depreciation over straight line depreciation was $1,200.
1) In 2021, Fenton Corporation's taxable income was $60,000. Federal income taxes paid was $3,000. Excess of accelerated depreciation over straight line depreciation was $1,200. Proceeds from life insurance policy on key employee was $4,000. What is Fenton Corporation's current earnings and profit for 2021?
2) Tesla Corporation distributed $40,000 to its only shareholder, Elon. Elon's adjusted basis in the corporation is $20,000. Tesla Corporation's current E&P is $5,000 and accumulated E&P is $3,000. How much of the distribution results in a taxable gain to Elon?
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
