Active business income

Assignment Help Accounting Basics
Reference no: EM13120705

In the current year, Spring Corporation, a closely held personal service corporation, has $120,000 of passive losses, $70,000 of active business income, and $50,000 of portfolio income. How much of the passive loss may Spring deduct in the current year?

Reference no: EM13120705

Questions Cloud

Problem related to fair market value : Rob was given a residence in 2010. At the time of the gift, the residence had a fair market value of $200,000, and its adjusted basis to the donor was $140,000. The donor paid a gift tax of $10,000 on the taxable gift of $188,000. What is Rob's ba..
Information about exponential equation : In the order of operations Pemdas requires that exponentation takes precedence over multiplication, so we cannot multiply 4*2 without first evaluating 2^x, but we could divide both sides by 4.
What entry is required in the depositors accounts : A check drawn by a depositor in payment of a voucher for $925 was recorded in the journal as $295. What entry is required in the depositor's accounts?
Compute probability of receiving calls in interval of time : Compute the probability of receiving three calls in a 5-minute interval of time. Compute the probability of receiving exactly 10 calls in 15 minutes.
Active business income : In the current year, Spring Corporation, a closely held personal service corporation, has $120,000 of passive losses, $70,000 of active business income, and $50,000 of portfolio income. How much of the passive loss may Spring deduct in the current..
What are the principle advantages of a subchapter : Would you answer in above question be different if the shareholder had also lent the subchapter S corporation cash in an amount in excess of the shareholders' allocable share of losses and deductions, and if so how?
Income inequality in us and egypt : Some authorities claim that globalization has led to greater income inequality in the U.S. and globally while others claim that inequality is due to improvements in technology and productivity. Using the Library and Internet sources, do the follow..
Test against null hypothesis of a one sided alternative : Test against the null hypothesis of a one sided alternative that the difference is more than 10 minutes. Use a .1 level of significance (alpha).
Determine the inventorys direct labor costs : Red Wing Company applies factory overhead based on direct labor costs. The company incurred the following costs during 2011: direct materials costs, $637,500; direct labor costs, $2,500,000; and factory overhead costs applied, $1,000,000.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Completion of accounting cycle

What are the steps in completing the accounting cycle? How do the different steps affect the financial statements?

  Disposal of delivery equipment-perez company

Perez Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage value is received.

  Preferred shareholders-common stockholders

What amount of dividends must the company pay the preferred shareholders in 2009 if they wish to pay the common stockholders a dividend?

  Transaction-adjustment on appropriate balance sheet

Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income

  Internal controls differences

What is the difference between a general control and an application control? What internal controls can be implemented using information systems to safeguard an organization's electronic assets?

  Conversion value of convertible

The conversion price of CRX's convertible ($1,000 par) subordinated debentures is $40 and the present market price of CRX common stock is $48.

  Fasb versus gasb

FASB has special rules for reporting on private health care organizations. And of course, if the health care organization is associated with government (as an SPE), then GASB rules. What are the similarities and differences in the accounting pract..

  Prepare the manufacturing staffs calculations

Prepare the manufacturing staffs calculations for the three alternatives:    In addition to reducing costs, the new technology proposed for the greenfield plant would increase  rnanufacturing flexibility, which would enable eTI to respond more quic..

  Revamping standard setting for accounting

Is there a need for revamping the standard setting for (GAAP) accounting and should the federal government be involved?

  Several topics in taxation

Compare and contrast start-up costs and organizational expenditures. Describe how the tax treatment of these expenditures differs from the treatment for financial accounting purposes.

  Estimate the variable and fixed cost elements

Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents pe..

  Nonprofit fund accounting: restricted funds

Can a nonprofit (not-for-profit) organization release restrictions on a "strike fund" and use it in the general fund for current year activity? Why or why not?

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!

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