During the year Soylent, Inc. (a publicly traded, non-closely held corporation) presents the following information related to its operations: Total Sales $500,000 Dividends Received from a corporation in which they have a 70% ownership $20,000 interest Operating Expenses ($100,000) Charitable Contributions (cash) ($20,000) Interest Expense ($200,000) Losses from investment in a passive activity ($10,000) Required: What is Soylent's tax liability for the year?

During the year Soylent, Inc. (a publicly traded, non-closely held corporation) presents the following information related to its operations: Total Sales $500,000 Dividends Received from a corporation in which they have a 70% ownership $20,000 interest Operating Expenses ($100,000) Charitable Contributions (cash) ($20,000) Interest Expense ($200,000) Losses from investment in a passive activity ($10,000) Required: What is Soylent's tax liability for the year?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 29P

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During the current year, The Jupiter Company, which is an S corporation, had the following items of income andexpenses: Income:Gross income from operations $150,000Interest income 5,000Qualified dividend income from investments 800Deductions:Compensation of Officers 67,000State taxes 5,000Short-Term Capital Loss 6,000Employee benefits 3,500Contribution to Pet Haven 1,000Interest 3,000Distributions to the shareholders 75,000a. Calculate the net ordinary income.b. List all the other items which must be separately reported.c. If the S corporation is on a calendar year, when is the corporation’s tax return due?
Radnor Corporation reports the following results for the current year: Gross profits on sales $135,000 Long-term capital loss $ 15,000 Short-term capital loss $4,000 Dividends from 60% owned domestic corporation $20,000 Operating expenses $ 55,000 Charitable contributions $15,000 What are Radnor's taxable income and income tax liability? What carrybacks and carryovers are available? If any?
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Radnor Corporation reports the following results for the current year: Gross profits on sales $135,000 Long-term capital loss $ 15,000 Short-term capital loss $ 4,000 Dividends from 60% owned domestic corporation $20,000 Operating expenses $ 55,000 Charitable contributions $15,000 What are Radnor’s taxable income and income tax liability?