Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of...

 

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Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor: $250,000 Business meals: $30,000 (100% of the amount paid) Client entertainment: $100,000 (100% of the amount paid) Political contribution/lobbying: $5,000 Advertising: $70,000 Taxes & licenses (state, local & payroll tax; not fed. inc. tax): $30,000 Life insurance policy on CEO - premiums: $12,000 Federal income taxes: $250,000 Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp.'s janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year? Realizing that bacon toothpaste probably wasn't the best invention, Mr. Bacon's business (Bacon Co.) developed a new product - bacon- scented sunscreen. Bacon Co. spent 6 months (January 2020 - Sept. 2020) and $10,000 developing the sunscreen. The product launched September 1, 2020, and initially it was a huge success. Bacon-scented sunscreen generated over $600,000 in sales in 2020. Sales tapered off quickly, and the sunscreen only generated sales of $100,000 in 2021. It is anticipated that there will be no bacon- scented sunscreen sales after 2021. What amount of R&E expenditures can Bacon Co. deduct in 2020 if Bacon Co. prefers to accelerate deductions as much as possible? W Co., a C corporation, owns 51% of Sub Corp. and 85% of Subsidiary Co., both domestic C corporations. W Co. had taxable income of over $100,000,000 this year (before dividends received deduction). W Co. had the following dividend income this year: $500,000 dividend income from Subsidiary Co. $1,000,000 dividend income from Sub Corp. What is that amount of W Co.'s dividends received deduction? XYZ Corp., a C corporation, owns 1% of Apple Inc., a domestic C corporation. XYZ Corp. had dividend income of $100,000 from Apple Inc. in 2019. XYZ Corp. had taxable income of over $3,000,000 this year (before DRD). What is that amount of XYZ Corp.'s dividends received deduction? Star Corp., a publicly traded, accrual-method C corp., incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor: $250,000 Business meals: $30,000 (100% of the amount paid) Client entertainment: $100,000 (100% of the amount paid) Political contribution/lobbying: $5,000 Advertising: $70,000 Taxes & licenses (state, local & payroll tax; not fed. inc. tax): $30,000 Life insurance policy on CEO - premiums: $12,000 Federal income taxes: $250,000 Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp.'s janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year? Realizing that bacon toothpaste probably wasn't the best invention, Mr. Bacon's business (Bacon Co.) developed a new product - bacon- scented sunscreen. Bacon Co. spent 6 months (January 2020 - Sept. 2020) and $10,000 developing the sunscreen. The product launched September 1, 2020, and initially it was a huge success. Bacon-scented sunscreen generated over $600,000 in sales in 2020. Sales tapered off quickly, and the sunscreen only generated sales of $100,000 in 2021. It is anticipated that there will be no bacon- scented sunscreen sales after 2021. What amount of R&E expenditures can Bacon Co. deduct in 2020 if Bacon Co. prefers to accelerate deductions as much as possible? W Co., a C corporation, owns 51% of Sub Corp. and 85% of Subsidiary Co., both domestic C corporations. W Co. had taxable income of over $100,000,000 this year (before dividends received deduction). W Co. had the following dividend income this year: $500,000 dividend income from Subsidiary Co. $1,000,000 dividend income from Sub Corp. What is that amount of W Co.'s dividends received deduction? XYZ Corp., a C corporation, owns 1% of Apple Inc., a domestic C corporation. XYZ Corp. had dividend income of $100,000 from Apple Inc. in 2019. XYZ Corp. had taxable income of over $3,000,000 this year (before DRD). What is that amount of XYZ Corp.'s dividends received deduction?