Rainbow Corporation, an S corporation, uses the calendar year as its tax year. Bentley, Abby, and...
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Rainbow Corporation, an S corporation, uses the calendar year as its tax year. Bentley, Abby, and Clayton own 30, 60, and 10 shares, respectively, of the Rainbow stock. Clayton's basis for his stock is $50,000 on January 1 of the current year (assume a non-leap year). On June 30, Abby gifted one-half of her stock to Mickey. On November 30, Clayton sold his stock to Mickey for $70,000. Rainbow reports the following results for the current year: (Click the icon to view the results.) Read the requirements. Requirement a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? (Enter all amounts as positive numbers. Use a 365-day year for computations. Do not round intermediary calculations. Only round the amount you enter into the input field to the nearest dollar.) Abby Clayton Total Allocation to Shareholder Ordinary income Long-term capital loss Charitable contributions Help me solve Bentley Requirements Mickey a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? b. What gain or loss does Clayton recognize when he sells the Rainbow stock? Data table Ordinary income Long-term capital loss Charitable contributions Print S Done - X 110,000 14,000 7,000 er Rainbow Corporation, an S corporation, uses the calendar year as its tax year. Bentley, Abby, and Clayton own 30, 60, and 10 shares, respectively, of the Rainbow stock. Clayton's basis for his stock is $50,000 on January 1 of the current year (assume a non-leap year). On June 30, Abby gifted one-half of her stock to Mickey. On November 30, Clayton sold his stock to Mickey for $70,000. Rainbow reports the following results for the current year: (Click the icon to view the results.) Read the requirements. Requirement a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? (Enter all amounts as positive numbers. Use a 365-day year for computations. Do not round intermediary calculations. Only round the amount you enter into the input field to the nearest dollar.) Abby Clayton Total Allocation to Shareholder Ordinary income Long-term capital loss Charitable contributions Help me solve Bentley Requirements Mickey a. What amount of income, loss, or deduction do the four shareholders report (assuming the corporation makes no special allocation election)? b. What gain or loss does Clayton recognize when he sells the Rainbow stock? Data table Ordinary income Long-term capital loss Charitable contributions Print S Done - X 110,000 14,000 7,000 er
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Step 1 Calculation of Income or loss for the four Shareholders Clayto... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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