Explain how much self-employment income

Assignment Help Financial Management
Reference no: EM13215138

1. Frank owns 100% of the stock of Sands, Inc. (a C corporation). In a tax year, Sands, Inc. has income before tax = $1,500,000. This is after Sands paid Frank a salary = $350,000. Sands, Inc. also paid dividends = $100,000. Sands is Frank's only source of income.

a. How much self-employment income will Frank report this tax year?

b. What is the characterization of the different forms of income received from Sands?

c. Will Sands receive any tax deduction for money paid to Frank?

d. Suppose instead of a profit, Sands had a $400,000 loss this year. What, from a tax perspective can Sands do?

Reference no: EM13215138

Questions Cloud

Use rfid for inventory and theft prevention : Write clearly and concisely about information security legal issues and topics using proper writing mechanics and technical style conventions
Compute the ratio of accounts receivable turnover : The 2007 and 2008 balance sheets for Alan Jack and Sons showed net accounts receivable of $10,000 and $14,000, respectively, and inventory of $8,000 and $6,000, respectively. Their 2008 income statement showed net sales of $109,500 and cost of goo..
Explain what would be the market value of the stock : (a) If investors who purchase similar investments require a 10 percent return, what is the market value of OST's preferred stock? (b) What would be the market value of the stock if investors require an 8 percent return?
What interest rate will be used to calculate interest expens : In 2007, Horwitz Corporation issued ten-year, 9 percent bonds when the market interest rate was 11 percent. Interest is payable annually. During 2010, the market rate of interest for similar bonds was 12 percent. Using the effective, interest meth..
Explain how much self-employment income : Frank owns 100% of the stock of Sands, Inc. (a C corporation). In a tax year, Sands, Inc. has income before tax = $1,500,000. This is after Sands paid Frank a salary = $350,000. Sands, Inc. also paid dividends = $100,000. Sands is Frank's only sou..
How much interest will you earn during the 7 years : how much interest will you earn during the 7 years Round the answer to the nearest cent If you put $7,000 at the end of each year into a savings account that pays interest at the rate of 3 percent a year, how much would you have after 7 years
Explain what the company''s marketing strategy should be : She reviewed the company's past marketing research, commissioned new research, and talked to both consumers and retailers. Now, the CEO of the company wants her thoughts on what the company's marketing strategy should be for the next few years.
Describe the nature of the company : Describe the nature of the company, what it did, how it was formed, and what service / production it wasprimarily engaged prior to its failure and provide a brief overview of the timeline surrounding its bankruptcy.
Prepare the fund balance section of the balance sheet : Center City's General Fund has the following net resources at year end:  $658,800 total fund balance  $100,000 rainy day fund approved by the township governing board  $2,500 of supplies inventory  $75,000 state grant for snow removal

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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