Calculate the taxable income of the business entity

Assignment Help Accounting Basics
Reference no: EM132657622

Problem - A business entity's taxable income before the cost of certain fringe benefits paid to owners and other employees is $400,000. The amounts paid for these fringe benefits are reported as follows.

 

Owners

Other Employees

Group term life insurance

$20,000

$40,000

Lodging incurred for the convenience of the employer

50,000

75,000

Qualified retirement plan

30,000

90,000

The business entity is equally owned by four owners.

Required -

a. Calculate the taxable income of the business entity if the entity is a partnership, a C corporation, and an S corporation.

b. Determine the effect on the owners for each of the three business forms.

Reference no: EM132657622

Questions Cloud

Compute which perspective of the balanced scorecard : Company growth rates (compared to industry growth rates) may be an example of measuring which perspective of the balanced scorecard?
Define and discuss the consensus view : In 2-3 paragraphs, using critical thinking and your own thoughts, define and discuss the consensus view. Do you agree with this view? The response must be.
Sustainable growth rate-shield corp : -A firm is expected to have earnings next year of $5.44 per share and the firm is expected to pay a dividend of $3.42. Investors' required rate of return is 12%
How does the auto company mercedes-benz apply : Determine the profitability of their product and how it's used to make the operations more profitable when it come to the high-end luxury auto production?
Calculate the taxable income of the business entity : The business entity is equally owned by four owners. Calculate the taxable income of the business entity if the entity is a partnership, a C corporation
Find the rate of change for rent in columbus : The fair market Rental rate for Columbus was $630 in 2013 and $551 in 2003. Find the rate of change for rent in Columbus during this period.
Record the elimination of the intercompany holdings of posey : Record the elimination of the intercompany holdings of Posey's bonds. Record the entry to eliminate the intercompany interest receivables/payables.
How much will operating income be for harvey automobiles : If Harvey Automobiles makes the part, how much will its operating income be? Harvey Automobiles uses a standard part in the manufacture of several of its trucks
Current price of the bond-black water corp : The bond has a maturity of 30 years and a yield to maturity of 9.55 percent, compounded annually. What is the current price of the bond?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd