Reference no: EM13788172
ParentCo and SubCo are calendar year corporations that keep their respective books on the accrual basis. The companies have taxable income of $200,000 and $250,000, respectively, for tax year 2013 (before consolidation adjustments, elimination entries and charitable deductions). The following transactions are included:
Land was sold by ParentCo to a third party for $100,000. The land was acquired from SubCo in 2011. SubCo acquired the land in 2008 for $50,000.
ParentCo’s taxable income includes a $12,000 dividend SubCo paid to ParentCo.
ParentCo lends SubCo $150,000 in January 2013. SubCo repaid the loan with $6,000 interest in December 2013.
ParentCo and SubCo contribute $17,000 and $11,000 to charity, respectively.
SubCo earned $1,600 of tax exempt interest income which is not included in SubCo’s $250,000 taxable income.
Directions:
Calculate the consolidated taxable income and consolidated tax liability of ParentCo and SubCo for 2013. Than calculate the basis of ParentCo’s stock at the end of 2013, assuming that it was $1,000,000 at the beginning of the year.
Requirements:
Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that you’re thought process can be examined. Make good use of comments to convey your thought process as well. No hard coding of solutions. Submit a single Excel file for grading. Review the grading rubric, which can be accessed from the Course Information page, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.
Equivalent units of work completed and transferred out
: Berkeley Bag manufactures high end book bags. One product line is a shoulder bag designed for trade fairs and conferences that the company "seeds" with products specified by the customer. The equivalent units of work completed and transferred out in ..
|
What is unethical behavior
: What is unethical behavior as it relates to the criminal justice field and should all criminal justice professionals have ethical training as a requirement for their job position
|
What are the ethical implications of draft
: You can choose to craft a general message, something that would be useful to all prospective students, or you can focus on a specific academic discipline or some other important aspect of your college experience. Make sure your introductory commen..
|
How are studio and live versions performed the differently
: How are the studio and live versions performed the same or differently? The lyrics - are there changes or differences between the studio and live versions?
|
Consolidated taxable income and consolidated tax liability
: ParentCo and SubCo are calendar year corporations that keep their respective books on the accrual basis. The companies have taxable income of $200,000 and $250,000, respectively, for tax year 2013. Calculate the consolidated taxable income and consol..
|
Discuss how these advances have changed the way
: Write a 500-600 word paper identifying some of the technology used by law enforcement in carrying out their duties. Discuss how these advances have changed the way police do business
|
Belief of religious tradition issues
: What topic did you find meaningful and inspiring, and how do you plan on integrating it into your belief system?
|
Annual interests on the unpaid balance
: Assume that you will have a 10-year, $12,000 loan to repay when you graduate from college next month. The loan, plus 5 percent annual interests on the unpaid balance, is to be repaid in 10 annual instalments of $1,554 each, beginning one year after y..
|
Discuss the factors that lead to financial crises
: How do increases in interest rates play a role in promoting financial crises - Discuss the factors that lead to financial crises
|