Question
17. 2022 Corp Z Cash Method Taxpayer (Corp. Aggregate Receipts < $27 Mil.) 100% Owned by Shareholder A Business Income - $1200000 Business Expenses -
17. 2022 Corp Z Cash Method Taxpayer (Corp. Aggregate Receipts < $27 Mil.)
100% Owned by Shareholder A Business Income - $1200000 Business Expenses - $160000 NYS Bond Interest - $2000
Dividend received from 75% owned Corporation - $8000 Reasonable Compensation - $550000 Compensation of Family Members Not Active in the Company - $150000 Capital Loss ($5000)
Interest Expense paid to Bank - $250000 179 Depreciation Tractor - $25000 Bonus Depreciation Heavy Truck - $50000
Questions:
a. What is taxable income? _______________ Show calculations.
Define earnings and profits (2 or 3 sentences) ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________
Give Code Section for Part b _______________
What is 2022 E&P before distribution? _______________ Show calculation. (Yes/No)
Does shareholder A receive any dividend? _______________
If yes to e, how much? _______________
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
