need A and B

Problem: Module 9 Textbook Problem 10 Leorning Objective: 9-7 Explain the purpose of the occumulated eornings tax and the personal holding company tax During a recent 1RS audit, the revenue agent decided that the Parker family used their closely held corporation, Falco, to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Faico's taxable income was $1,020,000, it. paid no dividends, and it had no business need to retain income. Falco's marginal tax rate in prior years was 34 percent. Assume the accumulated earnings tax rate is 20 for all applicable years in this problem Required o. Compute Falco's accumulated earnings tax assuming that it had accumulated $4 million after-tax income in prior years. Assume that for these years at issue, a corporation is exempt up to $250.000 of accumulated earnings without demonstrating a reasonable business need for the accumulation. b. Compute Falco's accumulated earnings tax assuming that it had accumulated $142,000 after-tax income in prior years. Assume that for these years at issue, a corporation is exempt up to $250,000 of accumulated earnings without demonstrating a reasonable business need for the accumulation. Complete this question by entering your answers in the tabs below. Compute Falco's accumulated earmings tax assuming that it had accumutited 54 million aftec-tax income in prior years. (Enter your answer in dekiars and not in mithons of doilars? Problem: Module 9 Textbook Problem 10 Learning Objective: 9-7 Explain the purpose of the accumulated earnings tax and the personol holding compony tax During a recent IRS audit, the revenue agent decided that the Parker family used their closely held corporation, Falco, to avoid shareholder tax by accumulating earnings beyond the reasonable needs of the business. Falco's taxable income was $1,020,000, it paid no dividends, and it had no business need to retain income. Falco's marginal tax rate in prior years was 34 percent. Assume the accumulated earnings tax rate is 20% for all applicable years in this problem. Required: a. Compute Falco's accumulated earnings tax assuming that it had accumulated $4 million after-tax income in prior years. Assume that for these years at issue, a corporation is exempt up to $250,000 of accumulated earnings without demonstrating a reasonable. business need for the accumulation. b. Compute Falco's accumulated earnings tax assuming that it had accumulated $142.000 after-tax income in prior years. Assume that for these years at issue, a corporation is exempt up to $250,000 of accumulated earmings without demonstrating a reasonable business need for the accumulation. Complete this question by entering your answers in the tabs below. Compute falco's acoumulated earnings tax assuming that it had accumulated \$142,000 after-tax income in prior years. (Enter. your answer in dollars and not in mililons of dollars, Problem: Module 9 Textbook Problem 10 Learning Objective: 9.7 Exploin the purpose of the accumulated earnings tax and the personal holding company tox During a recent IRS audit, the revenue agent decided that the Parker family used their closely held corporation, Falco, to avold shareholder tax by accumulating earnings beyond the reasonable needs of the business. Falco's taxable income was $1,020,000, it paid no dividends, and it had no business need to retain income. Falco's marginal tax rate in prioryears was 34 percent Assume the accumulated eainings tax rate is 20% for all applicable years in this problem Required 0. Compute Falco's accumilated eamings tax assuming that it had accumulated $4 million after-tax income in prior years Assume that for these years at issue, a corporation is exempt up to $250,000 of accumulated earnings without demonstrating a reasonable b. Compute Falco s accumulated eamiongs tax assuming that it had accumulated $142,000 after-tax income in prior years. Assume that fon these years at issue, a corporation is exempt up to $250,000 of accumulated earnings without demonstrating a reasonable Complete this question by entering your answers in the tabs below. Compute falco: accumulated earnihgs tax assuming that it had accumulated 5142,000 after-tax income in prior vears