ABC Ltd. receives $12,000 in dividends from a non-connected corporation, Telus Corp. Which of the following is INCORRECT?
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ABC Ltd. receives $12,000 in dividends from a non-connected corporation, Telus Corp. Which of the following is INCORRECT?
a. ABC Ltd. owns more than 10% of the shares of Telus Corp.
b. Part IV Tax Payable = $4,600.
c. Dividends from non-connected corporations like Telus Corp. are often referred to as portfolio dividends.
d. ABC Ltd. owns less than 10% of the shares of Telus Corp.
e. Dividends from non-connected corporations are always subject to Part IV tax payable.
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- Bendi Corp. purchased 1,000 shares of Kala Corp. for $16 per share. The investment represents 5% ownership, and Bendi does not have significant influence. The fair value at year-end is $15 per share. Assuming no other transactions occurred, where would the $1 per share difference be reported on the year-end financial statements? a. Other Income and (Expense) b. Other Comprehensive Income c. Operating Income d. None of the aboveValiant Corp is a C corporation that earned $5.2 per share before it paid any taxes. Valiant Corp. retained $1 of after-tax earnings for reinvestment and distributed what remained in dividend payments. Assume that the corporate tax rate was 32% and dividend earnings were taxed at 12.2%. The value of the dividend earnings received after- tax by a holder of 99,960 shares of Valiant Corp. is $_______.(round your answer to two decimal places) Answer: 222 571.74Candice Corporation, a domestic corporation sold its 100,000 shares with par value of P 15 per share to Aginer Corporation for P 20 per share. How much is the capital gains tax of ABC Corporation? P 225,000 P 75,000 P Nil P 300,000 Candice Corporation, a domestic corporation sold its 100,000 shares with par value of P 15 per share for P 20 per share to the stock market, how much tax should Candice Corporation pay to the BIR? None P 3,000 P 9,000 P 12,000
- Q. No. 3 - X Ltd. owns all of the shares of Y Ltd. The shares of Y have an adjusted cost base of $40,000 and a fair market value of $940,000. Y has retained earnings of $100,000 (earned after 1971) and no eligible or non-eligible refundable dividend tax on hand. Y plans to pay a dividend of $900,000 to X. Subsequently, X will sell the shares of Y Ltd. to an arm's-length person for $40,000. Determine the tax consequences to X Ltd. of these transactions.Company Z has $105,000 of taxable income from its operations, $7,000 of interest income, and $24,000 of dividend income from preferred stock it holds in other corporations. Its corporate tax r is 25%. What is Company Z's tax liability? Assume a 50% dividend exclusion for taxes on dividends. Oa. $26,250 O b. $31,000 c. $34,000 d. $32,250 e. $28,000Bendi Corp. purchased 1,000 shares of Kala Corp. for $16 per share. The investment represents 5% ownership, and Bendi does not have significant influence. The fair value at year-end is $15 per share. Assuming no other transactions occurred, where would the $1 per share difference be reported on the year-end financial statements? Other Income and (Expense) Other Comprehensive Income Operating Income None of the above
- R Corporation has a negative current earnings and profits for tax year 20X7 of $15,000. Accumulated earnings and profits as of the beginning of 20X7 equal $10,000. On June 1, 20X7, R Corporation distributes $6,000 cash to its sole shareholder Y, whose basis in the stock is $2,000. What is the amount of dividend income that Y must report for the year (if zero, write zero as the answer)? Do any allocations on a per-month basis instead of a per-day basis.Marc, Inc., owns 75 percent of SRS Company. During the current year, SRS reported net income of $415,000 but paid a total cash dividend of only $110,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 40 percent.a. $25,380b. $18,300c. $22,140d. $41,3401. Corp A wishes to acquire the business of Corp T. Corp T stock is worth $650 million, and its shareholders cumulatively have a tax basis of $300 million in the Corp T shares. Corp T has no debt, very little cash, and assets with a cumulative tax basis of $100 million. Assume the Corp T shareholders don't want to pay tax on their gain. Which transactions are available in the following scenarios? a. Corp A is willing to use only its voting stock to acquire Corp T b. Corp A wants to use its stock to acquire only 80% of Corp T, and pay cash for the rest, and it needs Corp T to continue in existence (due to valuable licenses Corp T holds) c. Corp A wants to acquire the assets of Corp T for itself and have Corp T go out of existence d.Corp A wants one of its subsidiaries to acquire the assets of Corp T
- Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a car (basis of $30,000; fair market value of $40,000) that is subject to a $7,000 liability which Bonnie assumes. Puffin has no accumulated E & P and $70,000 of current E & P from other sources during the year. How much dividend should Bonnie report? a. $4,000b. $33,000c. $10,000d. $34,000e. None of the above Please show work.Determine how much of the distribution is taxed as dividend income and how much is a return of capital. The IB corp has accumulated E&P of $20000 on 1/1/20xx. During the year there is a deficit in E &P of $30000 earned evenly through out the year. On July 1, of 20xx BI corp. Distributes $12000 in cash to Maximo it's only shareholder.Colvis Corporation purchased an available-for-sale investment in 1,100 shares of Home Central shares for S30 per share. On the next balance-sheet date, Home Central shares are quoted at $34 per share. Assume tax rate of 20%. Colvis' should report O A. unrealized gain of $4,400 in other comprehensive income. O B. realized gain of $4,400 in other comprehensive income. O C. unrealized loss of $4,400 in the income statement. O D. unrealized gain of $3,520 in other comprehensive income.
