Find out the tax consequences to melinda

Assignment Help Financial Accounting

Reference no: EM13125583

Melinda has a 30% ownership interest in an entity for which she initially contributed $180,000. She is one of the original owners of the business. None of the owners are related. During the life of the business, the following have occurred: Cumulative losses of $250,000 during the first 3 years, Profits of $200,000 in the next year, Distributions to owners of $90,000 at the end of year 3, Distribution to Melinda of $50,000 that redeems 25% of her ownership interest at the end of year 4. No other owners redeem any of their ownership interest. Determine the tax consequences to Melinda if the entity is a partnership, an S corporation or C corporation.

Reference no: EM13125583

Questions Cloud

Effective to do one extraction with v ml : Given that the partition coefficient for a solute is K in a water-ether solvent extraction system, is it more effective to do one extraction with V mL of ether or three extractions with V/3 mL of ether

What is the sarbanes-oxley act : What is the Sarbanes-Oxley Act? How does act affect the audits for the accounting firm and for the organization? Has the Sarbanes-Oxley Act improved the quality of the audit? Answer in 150-200 words.

Pperant conditioning observational learning, social learning : Distinguish between operant conditioning, observational learning, and social learning. How are these different kinds of learning utilized in the work place? Give specific examples for each one.

Determine hassells and lawsons participation : Determine Hassell's and Lawson's participation in the year's net income of $378,000 under each of the independent assumptions above.

Find out the tax consequences to melinda : No other owners redeem any of their ownership interest. Find out the tax consequences to Melinda if the entity is a partnership, an S corporation or C corporation.

Differential equations-matrices and eigenvalues : For this problem please state the method you used and show the work required to obtain the answer. Find the general solution for each of the systems:

What is the amount of the finance charge : A customer charges a treadmill at Mike's Sport Shop. The price is $2,000 and the financing charge is 9% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer's..

Illustrate what amount of depreciation should be recorded : At the beginning of the machine's sixth year it was recognized the machine had three years of remaining life instead of five and that at the end of the remaining three years its salvage value would be $1,600. Illustrate what amount of depreciatio..

Nonisomorphic central extensions : Describe all nonisomorphic central extensions of Z_2 x Z_2 by a cyclic group Z_n for arbitrary n, meaning central extensions of the form:

User Account

All Pages