User Account

All Pages

How much income does Clown have from this distribution

Assignment Help Accounting Basics
Reference no: EM132549878

Question - Circus is a calendar-year S corporation that is owned 100% by Clown. At the end of the tax year after considering all current year income and losses Clown has a basis in his stock of $80,000 and Circus has $60,000 of earning and profits and $40,000 in its accumulated adjustments account. Circus distributes cash of $75,000 to Clown on the last day of the tax year. How much income does Clown have from this distribution?

a. $40,000.

b. $60,000.

c. $75,000.

d. $35,000.

Reference no: EM132549878

Questions Cloud

Construct the journal entries to account for the events : Construct the journal entries to account for the events and transactions in relation to the motor vehicle between 1 July 2015 and 31 December 2018.
Explain the meaning of the term without recourse : Old Reliant has offered to factor all of the company's receivables on a "without recourse" basis. Explain the meaning of the term without recourse
Make and what the journal entry is : Make and what the journal entry is? Blacktown Ltd received consultation service from Wonderland Ltd in exchange for its 500 shares.
Conservative fundamentalist christian church : You are a member of a conservative fundamentalist Christian church. You are working for an investment firm where you enjoy your work
How much income does Clown have from this distribution : Circus distributes cash of $75,000 to Clown on the last day of the tax year. How much income does Clown have from this distribution
Define unity of command : Please define "unity of command", explain the methods to improve horizontal information sharing
What is the weighted-average number of shares calculated : Cooren Ltd has 1 520 000 ordinary shares, What is the weighted-average number of shares calculated in accordance with AASB 133?
What is the most effective use of power : What is the most effective use of power that you have seen used in your professional or personal lives
How endeavour ltd would account for such costs : Determine the amounts at which Endeavour Ltd would recognise right-ofuse asset and lease liability on 1 July 2016. How Endeavour Ltd would account for such cost

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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