How much gross income must she report for federal income tax

Assignment Help Accounting Basics

Reference no: EM131975427

Problem

On September 30, Marsh Corporation, a calendar year taxpayer, sold a parcel of land (basis of $320,000) for an $800,000 note. The note is payable in four installments, with the first payment due next year. Because Marsh did not elect out of the installment method, none of the $480,000 gain is taxed this year. Marsh Corporation had a $150,000 deficit in accumulated E & P at the beginning of the year. Before considering the effect of the land sale, Marsh had a deficit balance in current E & P of $75,000. Mary, the sole shareholder of Marsh, has a basis of $350,000 in her stock. If Marsh distributes $750,000 to Mary on December 31, how much gross income must she report for Federal income tax purposes?

Reference no: EM131975427

Questions Cloud

Discuss concept of the signaling model of dividends : Based on the signaling model of dividends, should QTP increase or decrease the dividend to indicate its new plan to sales expansion?

Requiring any additional fixed assets : The firm is currently operating at 88% of capacity. How high can the firm's sales go without requiring any additional fixed assets?

What are the traditional measures of firm profitability : What are the traditional measures of firm profitability? What are the traditional measurements of a risky firm?

What is the benefit for the furniture division : Suppose that the two divisions agree on a transfer price of $35. What is the benefit for the Furniture Division? For the Motel Division

How much gross income must she report for federal income tax : If Marsh distributes $750,000 to Mary on December 31, how much gross income must she report for Federal income tax purposes?

Assignment capital budget excel template : Use the "Week 10 Assignment Capital Budget Excel Template" to show your work, answer the following questions:

Calculate the amount of calories : Calculate the amount of calories, protein and fluid from a rate - calculate cans from pt estimated needs

Determine the effective cost of borrowing in dollars : On September 30, 2015, Ericson Company negotiated. Determine the effective cost of borrowing in dollars in each of the three years 2015, 2016, and 2017.

What was overhead applied to the job during july : On July 1, Job 46 had a beginning balance of $710. During July, prime costs added to the job totaled $610. What was overhead applied to the job during July

User Account

All Pages