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Review the following accounting and tax data and complete the two requirements below: While James Craig and his former classmate Paul Dolittle both studied accounting
Review the following accounting and tax data and complete the two requirements below: While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat GTE specializes in customsculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of and each contributed $ in exchange for a percent ownership interest. GTE also borrowed $ from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTEs activities. GTE uses the cash method of accounting for both book and tax purposes and reports income on a calendaryear basis. GTE received $ of sales revenue and reported $ of cost of goods sold it did not have any ending inventory GTE paid $ compensation to James, $ compensation to Paul, and $ of compensation to other employees assume these amounts include applicable payroll taxes, if any GTE paid $ of rent for a building and equipment, $ for advertising, $ in interest expense, $ for utilities, and $ for supplies. GTE contributed $ to charity. GTE received a $ qualified dividend from a great stock investment it owned percent of the corporation distributing the dividend and it recognized $ in shortterm capital gain when it sold some of the stock. On December GTE distributed $ to James and $ to Paul. GTE has qualified property of $unadjusted basis Required: a Assume James and Paul formed GTE as an S corporation. Complete GTEs Form S page ; Form S Schedule K; and Pauls Form S Schedule Knote that you should use tax forms Compute the tax basis of Pauls stock in GTE at the end of What amount of Pauls income from GTE is subject to FICA or selfemployment taxes? What amount of income, including its character, will Paul recognize on the $ distribution he receives on December What amount of tax does GTE pay on the $ qualified dividend it received? b Assume James and Paul formed GTE as an LLC Complete GTEs Form page ; Form Schedule K; and Pauls Form Schedule Knote that you should use tax forms Compute the tax basis of Pauls ownership interest in GTE at the end of What amount of Pauls income from GTE is subject to FICA or selfemployment taxes? What amount of income, including its character, will Paul recognize on the $ distribution he receives on December What amount of tax does GTE pay on the $ qualified dividend it received?
Review the following accounting and tax data and complete the two requirements below:
While James Craig and his former classmate Paul Dolittle both studied accounting at school, they ended up pursuing careers in professional cake decorating. Their company, Good to Eat GTE specializes in customsculpted cakes for weddings, birthdays, and other celebrations. James and Paul formed the business at the beginning of and each contributed $ in exchange for a percent ownership interest. GTE also borrowed $ from a local bank. Both James and Paul had to personally guarantee the loan. Both owners provide significant services for the business. The following information pertains to GTEs activities.
GTE uses the cash method of accounting for both book and tax purposes and reports income on a calendaryear basis.
GTE received $ of sales revenue and reported $ of cost of goods sold it did not have any ending inventory
GTE paid $ compensation to James, $ compensation to Paul, and $ of compensation to other employees assume these amounts include applicable payroll taxes, if any
GTE paid $ of rent for a building and equipment, $ for advertising, $ in interest expense, $ for utilities, and $ for supplies.
GTE contributed $ to charity.
GTE received a $ qualified dividend from a great stock investment it owned percent of the corporation distributing the dividend and it recognized $ in shortterm capital gain when it sold some of the stock.
On December GTE distributed $ to James and $ to Paul.
GTE has qualified property of $unadjusted basis
Required:
a Assume James and Paul formed GTE as an S corporation.
Complete GTEs Form S page ; Form S Schedule K; and Pauls Form S Schedule Knote that you should use tax forms
Compute the tax basis of Pauls stock in GTE at the end of
What amount of Pauls income from GTE is subject to FICA or selfemployment taxes?
What amount of income, including its character, will Paul recognize on the $ distribution he receives on December
What amount of tax does GTE pay on the $ qualified dividend it received?
b Assume James and Paul formed GTE as an LLC
Complete GTEs Form page ; Form Schedule K; and Pauls Form Schedule Knote that you should use tax forms
Compute the tax basis of Pauls ownership interest in GTE at the end of
What amount of Pauls income from GTE is subject to FICA or selfemployment taxes?
What amount of income, including its character, will Paul recognize on the $ distribution he receives on December
What amount of tax does GTE pay on the $ qualified dividend it received?
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