User Account

All Pages

Benton company bc has one owner who is in the 35 federal

Assignment Help Accounting Basics
Reference no: EM13482666

Benton Company (BC) has one owner, who is in the 35% Federal income tax bracket. BC's gross income is $320,000, and its ordinary trade or business deductions are $175,000. Compute the tax liability on BC's income for 2009 under the following assumptions:

a. BC is operated as a proprietorship, and the owner withdraws $90,000 for personal use.

b. BC is operated as a corporation, pays out $90,000 as salary, and pays no dividends to its shareholder.

c. BC is operated as a corporation, pays out no salary or dividends to its shareholder.

d. BC is operated as a corporation, pays out $90,000 as salary to its shareholder, and pays out the remainder of its earnings as dividends.

e. Assume Robert Benton of 1121 Monroe Street, Ironton, OH 45638 is the owner of BC, which was operated as a proprietorship I 2009. Robert is thinking about incorporating the business in 2010 and asks your advice. He expects about the same amount of income and expenses in 2010 and plan to take $90,000 per year out of the company whether he incorporates or not. Write a letter to Robert [based on your analysis in (a) and (b) above] containing your recommendations.

Reference no: EM13482666

Questions Cloud

What journal entry should be recorded g at the beginning of : 1in 2013 company a sold inventory costing 100 to its fully-owned subsidiary company b for 150. the entire inventory
Determine the estimated sales in units of the overall : hitch company sells products s and t and has made the following estimates for the coming yr product nbsp unit selling
An aging of accounts receivable indicated that 62500 of : before year-end adjusting entries carter companys account balances at december 312013 for accounts receivable and the
The following is a list of various costs of producing : the following is a list of various costs of producing sweatshirts. classify each cost as either a variable fixed or
Benton company bc has one owner who is in the 35 federal : benton company bc has one owner who is in the 35 federal income tax bracket. bcs gross income is 320000 and its
Dividing llc net income and statement of members equity : dividing llc net income and statement of members equitymedia properties llc has three members kxt radio partners rachel
What are the financial techniques used to evaluate capital : what are the financial techniques used to evaluate capital projects in an organization? with respect to the
Assuming that nick and jolene have total allowable itemized : nick and jolene are married. nick is 61 and retired in 2011 from his job with amalgamated company. jolene is 56 and
Charley corp has outstanding accounts receivable totaling : charley corp. has outstanding accounts receivable totaling 2.54 million as of december 31 and sales on credit during

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which of the following tend to be non-differential in the

which of the following tend to be non-differential in the short term since they cannot be changed but are more likely

  Statement of revenues and expenditures

A government's Statement of Revenues, Expenditures and Changes in Fund Balances reflected proceeds of bonds in the amount of $1,000,000. That statement also reflected expenditures for debt service in the amount of $3,000,000, including $2,600,000 ..

  During the last year of operations accounts receivable

during the last year of operations accounts receivable increased by 10900 accounts payable increased by 5900 and

  Production records show that there were 490 units in the

production records show that there were 490 units in the beginning inventory 30 complete 1540 units started and 1560

  Journal entries in the books of tv land company

Prepare journal entries to record the transactions above on the books of TV Land Company. Closing en- tries should not be made.

  Accounting for business activities

Which of the following is a true statement about accounting for business activities?

  Record the adjusting entries assuming that the company uses

what are the adjusting entries for the following?a company uses a calendar year. the following figures are

  Basics of cumulative preferred stock

On January 2, 2007, Riley Corporation issued 20,000 shares of 6% cumulative preferred stock at $100 par value. On December 31, 2010, Riley Corporation declared and paid its first dividend.

  Basic earnings per share-diluted earnings per share

On October 1, Lemke issued $6,000,000 of 9% convertible bonds. Each $1,000 bond is convertible into 40 shares of common stock. No bonds have been converted. The number of shares to be used in computing basic earnings per share and diluted earnings..

  Task of evaluating reimbursement for office

An auditor for a government agency is assigned to the task of evaluating reimbursement for office visits to doctors paid by Medicare. The audit is to be conducted for all Medicare payments in a particular area during a certain month.

  Amounts payable on class of stock

At December 31, 2007 and 2008, Sloan Corp. had outstanding 2,000 shares of $100 par value 8% cumulative preferred stock and 10,000 shares of $10 par value common stock. At December 31, 2007, dividends in arrears on the preferred stock were $8,000...

  Change in accounting estimate

A change in an accounting estimate is: how much depreciation expense should the company recognize on December 31, 2010?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd