Answer the Following questions according to the Data provided: What is taxable income? _______________ What is 2022
Question:
Answer the Following questions according to the Data provided:
What is taxable income? _______________
What is 2022 E&P? _______________
Does shareholder A receive any dividends? _______________
If yes to #3, how much? _______________
If aggregated corporate receipts are under $27 million, what is the taxable income? _______________
2022 Corp X – (Corp. Aggregate Receipts > $27 Mil.)
100% Owned by Shareholder A
Business Income - $1,000,000
NYS Bond Interest - $2,000
Dividend received from 25% owned Corporation - $8,000
Business Expenses - $150,000
Reasonable Compensation - $500,000
Compensation of Family Members Not Active in the Company - $100,000
Capital Loss – $5,000
Interest Expense paid to Bank - $250,000
§179 Depreciation Tractor - $25,000
Bonus Depreciation Heavy Truck - $50,000
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker