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Please answer all thank you. please include the Letter answer Question 4 3.33 pts Liwei is the CEO of Krylon Corporation, a private, non-publicly traded,
Please answer all thank you. please include the Letter answer
Question 4 3.33 pts Liwei is the CEO of Krylon Corporation, a private, non-publicly traded, calendar year corporation Liwel was hired by Krylon Corporation on 1/1/2019. For the 2020 tax year, Honora's compensation package consisted of Cash compensation $1,500,000 Bonus tied to company performance for 700,000 2020 Bonus tied to company performance for 100,000 2019 All of the above amounts are fully taxable to Liwei and are ordinary, necessary and reasonable in amount How much can krylon Corporation deduct on its 1120 corporate tax return for 2020 for its compensation payments to Liwe? $0/ None $100,000 $1,000,000 $2,300,000 None of the other answers are correct. Question 2 Tyroil Corporation, a calendar year C corporation, is formed and begins business on April 25, 2020 In connection with its formation, Tyroil Corp.incurs startup expenditures of $54,000 in 2020. What is Tyroil's maximum potential deduction for startup expenditures for 2020 (rounded to the nearest dollar? SO / None $5,000 $3,650 $50.000 554,000 None of the other answer choices are correct. 3.33 pts Question 16 At the start of the current year, Emu Corporation la calendar year taxpayer) has accumulated E & P of positive $50,000. Emu's current E & Pis positive $40,000, and at the end of the year, it distributes $100.000 cash to its 100% shareholder, Liwei, Liwei's stock basis is $8.500 prior to the distribution How much of the distribution will be considered a dividend to Liwei? $0/ None $8,500 $40.000 $50,000 $90,000 $100,000 None of the other answer choices are correct 3.33 pts 3.33 pts Question 12 Brad and Joanne form Yathers Corporation Brad transfers land (basis of $30,000 and fair market value of $70,000) and Joanne Invests cash (560.000). They each receive 100 shares in Yathers Corporation, worth $60,000 ($120,000 in total stock value between the two), but Brad also receives a car from Yather corporation (FMV of $10,000 and a basis to the corporation of $3,000 right before the transfer to Brad in the transaction How much taxable income, if any, does Brad have in the transaction above? SO / None $3,000 $10,000 $60,000 None of the other answer choices are correct 3.33 p Step by Step Solution
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