Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lockhart Corporation is a calendar-year corporation. At the beginning of 2013, its election to be taxed as an S corporation became effective. Lockhart Corp.'s balance sheet at the end of 2012 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation):
Asset
Adjusted Basis
FMV
Cash
$ 35,000
Accounts receivable
25,000
Inventory
180,000
210,000
Land
125,000
120,000
Totals
$365,000
$390,000
Lockhart's business income for the year was $65,000 (this would have been its taxable income if it were a C corporation).
1. During 2013, Lockhart sold all of the inventory it owned at the beginning of the year for $250,000. What is its built-in gains tax in 2013? Be sure to show your work.
2. Assume the same facts as in part (1), except that if Lockhart were a C corporation, its taxable income would have been $17,000. What is its built-in gains tax in 2013? Be sure to show your work.
3. Assume the original facts except the land was valued at $115,000 instead of $120,000. What is Lockhart's built-in gains tax in 2013? Be sure to show your work.
The price of computer chips decreases significantly, enabling manufacturers of hard drives to produce more hard drives. How will this affect the market for hard drives?
The mother paid interest of $670 during tax year, $240 of which she calculated pertained to the taxpayer's use of credit line. The taxpayer will deduct an interest expense:
A purchase discount was recorded as a credit to purchases account- the remainder was properly recorded. This error will cause
gather and integrate your knowledge on the topics covered thus far; • investigate in depth the cases, rulings and legislation that are fundamental to taxation law; • demonstrate your ability to apply that knowledge to a hypothetical, practical situat..
Prepare the required journal entry to record the tax expense
A corporation has income of $62,000 from operations and a long term capital loss of $5,000 and long term capital gain of $4,000. What is the corporation's taxable income?
Discuss- A tax on cigarettes is a good way of raising tax revenue for the government
How much income must Dave report for tax year and what is character of the income and evaluate what is Dave's basis in his partnership interest at the end of tax year?
Evaluate the NPV, and the Profitability Index (PI) for this project. Could this project be undertaken?
Find what are fixed overhead price and production volume variances and evaluate the labor and variable overhead price and efficiency variances.
NML Ltd is a public gold mining company that is exploring for gold in the Ballarat and the Bendigo region. Geoff is the managing director and he seeks your advice as to the deductibility of the following expenses which were incurred prior to 30 June ..
Topaz Corporation had the following income and expenses during the current year: Revenues $80,000 Expenses $30,000 Gains on sale of Capital assets $ 5,000 Losses on sale of Capital assets $(25,000) What is Topaz's taxable income
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd