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WRT, a calendar years corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100 shares On September

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WRT, a calendar years corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100 shares On September 30, he gave 20 shares to his brother and 35 shares to his daughter. WRT's ordinary income for the year was $200,000 Required: What portion of this income must each shareholder include in income? (Assume 365 days in a year. Round income per day of ownership to 4 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount) Amount Brother's income Daughter's incomo Mr. Wallace's income 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 $910,000. 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 .. Computer 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 $131.000 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. Required A Required B Compute Falco's accumulated earnings tax assuming that it had accumulated s4 million after-tax income in prior years. (Enter your answerin dollars and not in millions of dollars) Accumulated camings to Required B >

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