Solution-Calculate any passive investment income tax penalty

Calculate any passive investment income tax penalty

Assignment Help Financial Accounting

Reference no: EM13971657

a. In 2012 Sweet water's excess net passive income is $42,000. Sweet water holds $31,000 of accumulated earnings and profits from a C corporation year. It reports $58,000 of taxable income and AMT adjustments of $17,000 for the year. Calculate any passive investment income tax penalty.

b. In part (a), what if taxable income were $39,000?

c. If this will be the third consecutive year the company may be subject to the penalty tax on excessive passive investment income, what could Sweet water do before the end of year to avoid the tax?

Reference no: EM13971657

Questions Cloud

Calculate the approximate largest sample size : Assume the auditor rounds the sampling interval down to the next nearest $5,000. Calculate the approximate largest sample size the auditor would expect.

Discuss whether either of the expert witnesses in this case : Discuss whether either of the expert witnesses in this case acted unethically. Support your opinion with the relevant APA or specialty ethical guidelines

Which of the following is true of business markets : Julia is worried about the rising pollution levels in her city. She doesn't mind paying extra for goods and services that use sustainable processes to help control pollution.

Give specific evidence : Do the ends justify the means in ethical decision-making for journalists? Or is it more important to follow ethical rules and guidelines? In other words, explain the differences between deontological or teleological philosophies that can guide ethica..

Calculate any passive investment income tax penalty : If this will be the third consecutive year the company may be subject to the penalty tax on excessive passive investment income, what could Sweet water do before the end of year to avoid the tax?

List and explain all the defenses of libel : List and explain all the defenses of libel. Now explain how this would apply to the breaking and entering story from class. The man was listed as being charged with "breaking and entering (burglary)." But he says he was merely trying to kill his girl..

Create tables with appropriate primary and foreign keys : Create tables ICECREAM, INGREDIENT and RECIPE with appropriate primary and foreign keys. What are the names of all ice creams and which ice cream flavored were offered before 1999

What influences have shaped those attitudes and values : Discuss how sexual attitudes and values varied among cultures throughout history. What influences have shaped those attitudes and values

Formula and financial calculator methods : Your father offers you a choice of $105,000 in 12 years or $47,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

User Account

All Pages

Calculate any passive investment income tax penalty

Reference no: EM13971657

Reference no: EM13971657

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT