Reference no: EM133127823

Question - Tax Treatment of Income from Entities - The G family-Mr. G, Mrs. G, and G Jr.-owns interests in the following successful entities:

1. X Corporation is a calendar year regular corporation owned 60% by Mr. G and 15% by G Jr. During the year, it paid salaries to Mr. G of $80,000 to be its president and to G Jr. of $24,000 to be a plant supervisor. The company earned a net taxable income of $75,000 and paid dividends to Mr. G and G Jr. in the amounts of $42,000 and $10,500, respectively.

2. 2. Mrs. G owned a 60% capital interest in a retail outlet, P Partnership. The partnership earned a net taxable income of $60,000 and made distributions during the year of $72,000. The profit and the distributions were allocated according to relative capital interests.

3. Mr. G and G Jr. each own 25% interest in H Corporation, an electing S Corporation. The corporation is a start-up venture and generated a net tax loss of $28,000 for the calendar year. No dividend distributions were made by H. Both Mr. G and G Jr. have bases in their H Corporation stock of $30,000.

4. G Jr. is the sole beneficiary of G Trust created by Mrs. G's father. The trust received dividends of $16,000 and made distributions of $4,500 to G Jr.

Required - Determine the amount of income or loss from each entity that is to be reported by the following (ignore the qualified business income deduction of § 199A):

a. Mr. and Mrs. G on their joint calendar year tax return

b. G Jr. on his calendar year individual return

c. X Corporation

d. P Partnership

e. H Corporation

f. G Trust