Joseph Thompson is president and sole shareholder of Jay Corporation. In December 2015, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University of Maine, a qualified public charity. Joe is considering the following alternatives as charitable contributions in December 2015:
Joe has asked you to help him decide which of these potential contributions will be most advantageous taxwise. Jay’s taxable income is $3.5 million before considering the contribution. Rank the four alternatives and write a letter to Joe communicating your advice. The corporation’s address is 1442 Main Street, Freeport, ME 04032.
Answer to relevant QuestionsJoel is the sole shareholder of Manatee Corporation, a C corporation. Because Manatee’s sales have increased significantly over the last several years, Joel has determined that the corporation needs a new distribution ...In each of the following independent situations, determine the corporation’s income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved is 2015. ...In January of the current year, Don and Steve each invested $100,000 cash to form a corporation to conduct business as a retail golf equipment store. On January 5, they paid Bill, an attorney, to draft the corporate charter, ...If the AMT is greater than the regular corporate tax, the corporation must pay the greater AMT. Discuss. Explain the relationship between the following items: a. DPAD and W–2 wages. b. DPAD and QPAI. c. DPAD and TI. d. DPGR and QPAI. e. DPAD and AMT.
Post your question