$35.00 $15.00
$0 income from the S corporation, and $30,000 income from the C corporation |
The due date for a corporate income tax return (ignoring extensions) is the 15th day of the third month following the close of the corporation’s tax year. |
Dawn recognizes a gain of $375,000; William recognizes a gain of $325,000. |
Kevin recognizes no taxable gain on the transfer. |
Mary will not recognize gain or income |
$0 |
financial accounting tax accrual work papers |
$0 |
$0 |
$0 |
$73,000 |
Constructive dividends do not need to be formally declared or designated as a dividend. |
$195,000 capital gain |
400 |
§ 351, which allows entities to incorporate tax-free |
This restructuring qualifies as a Type A reorganization. |
Type A |
E & P is computed solely on a consolidated basis. |
Tax-exempt charitable corporations |
The lower tax rates on the first $75,000 of taxable income |
1. (TCO 2) During the current year, Pet Palace Company had operating income of $510,000 and operating expenses of $400,000. In addition, Pet Palace had a long-term capital gain of $30,000. How does Lucinda, the sole owner of Pet Palace Company, report this information on her individual income tax return under the following assumptions? (I) Pet Palace is a proprietorship, and Lucinda does not withdraw any funds from the company during the year. (II) Pet Palace is an LLC, and Lucinda does not withdraw any funds from the company during the year. (III) Pet Palace is an S corporation, and Lucinda does not withdraw any funds from the company during the year. (IV) Pet Palace is a regular corporation, and Lucinda does not withdraw any funds from the company during the year.(Points : 30)
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