Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you please help me solve the problems below with the x's on them? Thank you Discussion Question 17-11 (LO. 2) Marmot Corporation pays a

Could you please help me solve the problems below with the x's on them? Thank you

image text in transcribedimage text in transcribedimage text in transcribed
Discussion Question 17-11 (LO. 2) Marmot Corporation pays a dividend of $100,000 in the current year. Otter Corporation, owns 15% of Marmot's stock. Gerald, an individual taxpayer in the 24% marginal bracket, also owns 15% of Marmot's stock. Compare and contrast the treatment of the dividend by Otter Corporation and Gerald. Click here to view the dividend received deduction to use for this question. a. Otter Corporation will be allowed a dividends received deduction v equal to 50 v % of the dividends it received. It will pay tax of 24 X % on the remaining portion v of the dividends. b. Gerald must include in income all of the dividends v . He will pay tax at the 15 V % rate.In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this information on their respective Federal income tax returns for the current year under the following assumptions? If an amount is zero, enter "0". a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business). Roger reports $ 45,000 net operating profit and $ 10,000 V long-term capital loss on his tax return. Roger would claim a $ 3,000 X deduction for qualified business income. Riflebird Company, as a proprietorship, files no entity v Federal income tax return for the year. Feedback Check My Work A sole proprietorship is not a taxable entity separate from the individual who owns the proprietorship. Unlike proprietorships, and S corporations, C corporations are subject to an entity-level Federal income tax. b. Riflebird Company is a C corporation (no dividends were paid during the year). Roger reports $ 45,000 X net operating profit and $ 0 long-term capital loss on his tax return. Riflebird Company will report taxable income of $ 45,000 on its Form 1120 v FeedbackProblem 17-43 (LO. 2) In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that none of the corporate shareholders owns 20% or more of the stock in the corporations paying the dividends. Almond Banana Cherry Corporation Corporation Corporation Income from operations $700,000 $800,000 $900,000 Expenses from operations (600,000) (860,000) (910,000) Qualifying dividends 100,000 100,000 100,000 Click here to view the dividend received deduction table. a. The dividends received deduction for Almond Corporation is 50,000 b. The dividends received deduction for Banana Corporation is 20,000 X . c. The dividends received deduction for Cherry Corporation is 50,000 X . Feedback

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice

10th edition

324645570, 978-0324645576

Students also viewed these Accounting questions