Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett, Incorporated, distributed $60,000 to JD. His basis in his Clampett, Incorporated, stock on January 1, 2021, was $60,000. For 2021, JD. was allocated $19,000 of ordinary income from Clampett, Incorporated, and no separately stated items. What is JDs basis in his Clampett, Incorporated, stock after all transections in 20217 Mutiple Choice $41.000 $22.000 S1.000

Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett, Incorporated, distributed $60,000 to JD. His basis in his Clampett, Incorporated, stock on January 1, 2021, was $60,000. For 2021, JD. was allocated $19,000 of ordinary income from Clampett, Incorporated, and no separately stated items. What is JDs basis in his Clampett, Incorporated, stock after all transections in 20217 Mutiple Choice $41.000 $22.000 S1.000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 29CE

See similar textbooks

Similar questions

7 Clampett, Incorporated, has been an S corporation since its inception On July 15, 2021, Clampett, Incorporated, distributed $78,000 to J.D. His basis in his Clampett, Incorporated, stock on January 1, 2021, was $39,000. For 2021, JD. was allocated $38,000 of ordinary income from Clampett, Incorporated, and no separately stated items. What is J.o's basis in his Clampett, Incorporated, stock after all transactions in 20217 Multiple Choice $77000 $39,000 SL000 ($38.000 None of the choices are corect
Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2021, it reported financial statement income after taxes of $1,529,880. Timpanogos provided the following information relating to its 2021 activities: $ 228,000 2,280,000 23,940 205,200 Life insurance proceeds as a result of CrO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Qualified charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2021 Rental income payments received in 2020 but earned in 2021 Rental income payments received in 2021 but not earned by year-end Tax depreciation Book Depreciation Net capita1 loss Federal income tax expense for books in 2021 342,000 45,600 51,300 17,100 11,400 34,200 62,700 28,500 47,880 353,400 Required: a.…
Chris is the 100% shareholder of the Denture Corporation, an S corporation, and has a basis of $10,000 in the stock as of January 1, 2019. Chris also made a $15,000 loan to Denture Corporation as of January 1, 2019. During 2019, Denture Corporation had a $5,000 capital gain, made a $2,000 cash distribution to Chris, and incurred a $20,000 ordinary taxable loss. a) What is Chris’ stock basis at the end of 2019? _____________________ b) What is his loan basis at the end of 2019? ______________________
Clampett, Incorporated, converted to an S corporation on January 1, 2020. At that time, Clampett, Incorporated, had cash ($37,000), inventory (FMV $57,000, basis $24,000), accounts receivable (FMV $37,000, basis $37,000), and equipment (FMV $57,000, basis $77,000). In 2021, Clampett, Incorporated, sells its entire inventory for $57,000 (basis $24,000). Assume the corporate tax rate is 21 percent. Clampett, Incorporated's taxable income in 2021 would have been $1,000,000 if it had been a C corporation. How much built-in gains tax does Clampett, Incorporated, pay in 2021? Multiple Choice O O $9,870 $13,000 $2,730 $0 None of the choices are correct.
On January 1, 2020 EA Inc makes an S Corporation election. EA Inc has been operated as a C Corporation for several years and had E &P of $50,000 at January 1, 2020. Ellyn, the sole shareholder has a tax basis in her shares of EA Inc of $100,000 on January 1, 2020. During 2020, EA Inc has taxable income of $250,000. On December 31, 2020 EA Inc distributes $600,000 to Ellyn. What amount of dividend income and/ or capital gain will Ellyn recognize as a result of the cash distribution ? A. No dividend income or gain OB. Dividend income $50,000; capital gain $200,000 O C. Capital gain of $250,000 OD. $50,000 dividend income
At the beginning of the current year, Tymoe, an S corporation, was owned by two individual shareholders, Tyler and Moe. Tyler owns 52% and Moe owns 48%. During the year, Tymoe had ordinary income of $480,000, a net long-term capital gain of $45,000, and charitable contributions of $12,000. What is the amount of ordinary income, capital gain, and charitable contribution from Tymoe's activities that Tyler and Moe must each report in the current year?
Cedar Corporation has an S corporation election in effect. During the 2019 calendar tax year, the corporation had ordinary taxable income of $200,000, and on January 15, 2019, the corporation paid dividends to shareholders in the amount of $120,000. How much taxable income, in total, must the shareholders of the corporation report on their 2019 tax returns?
Timpanogos Incorporated is an accrual-method, calendar-year corporation. For 2023, it reported financial statement income after taxes of $1,572,350. Timpanogos provided the following information relating to its activities for the year: Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value. Charitable contributions Cost of goods sold for book and tax purposes Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments received and earned in 2023 Rental income payments received in 2022 but earned in 2023 Rental income payments received in 2023 but not earned by year-end Tax depreciation Book Depreciation Net capital loss Federal income tax expense for books Required: $ 234,000 2,340,000 24,400 210,600 351,000 a. Reconcile book income to taxable income for Timpanogos Incorporated. Be…
(4) Able is a shareholder in the QRS Corp. QRS has accumulated earnings and profits of $200,000, and current earnings and profits for the year 2019 equal to $300,000. What are the tax consequences to Able if QRS on December 15, 2019 declares a dividend equal to $250,000 payable in equal amounts of $50,000 to Able and the other four shareholders of QRS Corp. on December 27, 2019, if: (a) The amount declared is payable in the common stock of QRS? (b) Able and his fellow shareholders have the option of having the amount declared paid either in cash or QRS stock, and they all choose to receive additional stock? (c) Able can receive only additional QRS stock for his share of the amount declared, and the other four shareholders can receive only cash for their share?
Peter is the sole shareholder in a calendar year S corporation. In 2021, his stock basis is $50,000, his share of the AAA is $ 11,000, and his share of corporate AEP is $ 16,000. He receives a $29,000 distribution, and his share of S corporation items includes a $ 12,000 long- term capital loss and a $ 18,000 ordinary income. a. Determine Peter’s ending balance in AAA, AEP, and stock basis. b. How much income, gain, or loss will Peter have from the above transactions in the S corporation? Be specific in terms of the amount of income (or loss) and the character of the income or loss. c. Peter notes, “It sure is great this is an S corporation because I know that I won’t get taxed on the $29,000 distribution. What will you tell Peter? Write one or two paragraph explaining the tax implications of the S corporation transactions.
Tesla, Inc., is a calendar year, accrual basis corporation with Elon as its sole shareholder (basis in his stock is $90,000). On January 1 of the current year, Tesla has accumulated E & P of $200,000. Before considering the effect of the distribution described below, the corporation’s current E P is $50,000. On November 1, Tesla distributes an office building to Elon. The office building has an adjusted basis of $80,000 (fair market value of $100,000) and is subject to a mortgage of $90,000. Assume that the building has been depreciated using the ADS method for both income tax and E&P purposes. What are the tax consequences of the distribution to Tesla and to Elon? (In your answer, be sure to describe the effects on taxable income for both Tesla and Elon, the impact of the distribution on Tesla’s E&P, and Elon’s basis in the building.)
George is a shareholder of GJ Corporation, a listed entity. During 2021, he sold his 5,000 shareholdings for P120,000, which he purchased for P20 per share. Calculate the applicable percentage tax.