Reference no: EM13926191
Delaine is a 90% shareholder in a personal service corporation (PSC). The corporation paid Delaine a salary of $353,300 during its fiscal year ending September 30, 2015.
If required, round your answers to the nearest dollar.
a. Assume that the corporation cannot satisfy the business purpose test for a fiscal year. The corporation can continue to use its fiscal year without any negative tax effects, provided Delaine receives at least mce_markernbsp; as salary during the period October 1 through December 31, 2015.
b. Assume that the corporation cannot satisfy the business purpose test or salary test for a fiscal year. The corporation pays Delaine a salary of $70,660 for October 1 through December 31, 2015, and salary of $423,960 from January 1, 2016, through September 30, 2016.
The personal service corporation can retain the fiscal year if the corporation's deduction for salary for its fiscal year ending September 30, 2016, is limited to $ .
|
Advanced topics that require specific qualifications
: Some courses cover advanced topics that require specific qualifications as prerequisites. Some courses cover basic topics that do not require any prerequisite qualifications. A course can have several prerequisites. A qualification can be a prerequis..
|
|
Risk assessment component of internal control
: Which of the following describes the risk assessment component of internal control
|
|
Ture of internal control
: Which of the following is ture of internal control
|
|
Profitability ratios of hershey for its years ending
: Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2009, and December 31, 2008. Interpret its profitability using the results obtained for these two years.
|
|
A personal service corporation
: Delaine is a 90% shareholder in a personal service corporation (PSC). The corporation paid Delaine a salary of $353,300 during its fiscal year ending September 30, 2015.
|
|
Percentage of completion
: What is the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory, and (b) transferred-in costs and direct materials in ending work-in-process inventory?2. For each cost category, compute eq..
|
|
Sales section of the income statement.
: The adjusted trial balance of Hodges Company shows these data pertaining to sales at the end of its fiscal year, October 31, 2014: Sales Revenue $900,000; Freight-Out $14,000; Sales Returns and Allowances $22,000; and Sales Discounts $13,500.Prepare ..
|
|
A statement of stockholders equity for the year ended
: Prepare a statement of stockholders' equity for the year ended December 31, 2015
|
|
Expects to maintain the same inventories
: Wolsey Industries Inc. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the vari..
|