Question
Tiger Co. had a non-eligible RDTOH (NERDTOH) balance of $15,000 at the end of 2019, and the dividend refund from the NERDTOH in 2019 was
Tiger Co. had a non-eligible RDTOH (NERDTOH) balance of $15,000 at the end of 2019, and the dividend refund from the NERDTOH in 2019 was $7,000. The company's Part IV tax on non-eligible dividends for 2020 is $8,000. The company's active business income is $475,000 and its taxable income is $410,000. Tiger is associated with Lion Co., which has only active business income. Lion Co. was allocated $125,000 of the small business deduction in 2020. Tiger has investment income which remained at $45,000 in both 2019 and 2020. The total taxable capital of the two corporations is less than $10 million. Part I tax for 2020 was $47,283. What is Tiger's NERDTOH balance at the end of 2020? (Round all numbers)
Multiple Choice
-
$8,000
-
$26,733
-
$16,000
-
$65,623
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started