advanced tax, Taxation

Assignment Help:
The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron,
owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40%
of the stock. Mr. Buron contributed $30,000 of cash and services worth $35,000
to start the S corporation. Mr. Huges contributed property with a cost to him of
$50,000 and a fair market value of $75,000 to also start the S Corp.

Below are pertinent facts for the current year:

Cost of Goods Sold 460,000 1. Calculate (and show computations)
Charitable Contributions 8,000 of the S Corporation''s ordinary taxable income:
Depreciation 25,000
Sales 980,000 Answer:
Long Term Capital Gain 12,000 Ordinary Income
Repairs and Maintenance 10,000
Distribution to Mr. Buron 66,000 Sales $980,000
Section 1231 gain 8,500
Dividends received 1,500
Distribution to Mr. Huges 44,000
Salary to Mr. Buron 70,000
Municipal Bond Interest Received 1,000
Short Term Capital Loss 7,000
Other Salaries 235,000


Related Discussions:- advanced tax

Determine the amount of tax, Bass River Furniture operates a manufacturing ...

Bass River Furniture operates a manufacturing business in Bass River, Nova Scotia. On June 8, 2010, Bass River purchased an asset for an invoice price before HST of $1,800,000.  Th

Corporate tax, L has business assets worth $6,000,000, NOL carryovers of $1...

L has business assets worth $6,000,000, NOL carryovers of $1,000,000 expiring in 14 years, and NOL carryovers of $1,400,000 expiring in 15 years. 100% of L’s stock is worth $8,000

Calculate the tax, Sue, Scarlett and Sally are in a partnership together pr...

Sue, Scarlett and Sally are in a partnership together providing accounting services.  The partnership uses the cash basis to account for income tax.  Under the partnership agreemen

Calclution, Ask question #Minimum 100 words Problem 4-42 (LO. 3, 4) Faye, G...

Ask question #Minimum 100 words Problem 4-42 (LO. 3, 4) Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a c

Sales tax, The Johnson family went to dinner at Pasta Palace. Mr. Johnson o...

The Johnson family went to dinner at Pasta Palace. Mr. Johnson ordered a meal for $6.25;Mrs.Johnson ordered a meal for $ 7.50; the 2 children ordered individual pizza for $ 4.99 ea

Taxable income, The following 2012 projected income statement is provided b...

The following 2012 projected income statement is provided by your new client, John Green, single, and sole proprietor of Green Industries. Green Industries started business in Marc

Compute the effective income tax rate for 2013 and 2014., The following ite...

The following items caused the only differences between pretax financial income and taxable income. • In 2013, the company collected $90,000 of rent; of this amount, $30,000 was ea

Tax shields, T ax Shields A tax shield is defining any reductio...

T ax Shields A tax shield is defining any reduction in a corporation's tax bill which can be brought about by management. Depreciation, for example create a tax shield

Income tax liability, The following information is available for Kessler Co...

The following information is available for Kessler Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax

Principles , principles of business taxation

principles of business taxation

Write Your Message!

Captcha
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