How should the distribution be treated for tax purposes

Assignment Help Financial Accounting
Reference no: EM13137212

Tangelo had $50,000 in accumulated E&P at the beginning of the year, during the year it incurred a $75,000 operating loss, it distributed $65,000 to its sole shareholder, how should the distribution be treated for tax purposes?

Reference no: EM13137212

Questions Cloud

What misstatements can appear in the financial statements : If a company does not monitor notes payable for due dates and interest payment dates in relation to financial statement dates, what misstatements can appear in the financial statements?
Congestive cardiac failure : Mr Ward is a 71 year old male who is admitted to your ward after reporting to his local GP that he has been feeling a non-radiating, -heavy- discomfort in the lower retrosternal and epigastric region particularly when he bends over or walks short dis..
What was the total amount of manufacturing costs assigned : What was the total amount of manufacturing costs assigned to the 8,000 units in the ending work in process?
Find probability that car has gas mileage is in value : A standard deviation of 0.6 miles per gallon, find the probability that a car has a gas mileage of between 28.8 and 29.2 miles per gallon.
How should the distribution be treated for tax purposes : Tangelo had $50,000 in accumulated E&P at the beginning of the year, during the year it incurred a $75,000 operating loss, it distributed $65,000 to its sole shareholder, how should the distribution be treated for tax purposes?
What is value of common stock based on market : What is the value of the bond based on the market price of the common stock? What is the value of the common stock based on the market price of the bond?
What are the relevant tax issues for matt : A friend recommends that Matt buy a beach house in order to increase his itemized deductions with the mortgage interest deduction. What are the relevant tax issues for Matt?
Determining the incomes of the component corporations : When an indirect ownership is present, why is a specific ordering necessary for determining the incomes of the component corporations?
Division relevant to operating range : The Red Car Division has excess capacity and the 1,000 units can be produced without interfering with the current outside sales of 5,000. The 6,000 volume is within the division's relevant operating range.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the appropriate journal entries

The overhaul was completed on January 7, 2011 at a cost of $28,000. Because of a slowdown in the economy, the truck only operated for 21,000 km for the remainder of 2011. Instructions Prepare the appropriate journal entries for 2011 relating to t..

  Briefly describe four types of demands customers

attention to customers is necessary for success. Briefly describe four types of demands customers are currently placing on organizational performance.

  Difference between the total undiscounted cash

purchase of a $43,000 machine that would reduce operating costs in its warehouse by $6,200 per year. At the end of the machine’s 10-year useful life, it will have no scrap value. The company’s required rate of return is 12%.

  Illustrate what is great lake effective tax rate

Great Lakes statutory tax rate for 2010 is 35%. Illustrate what is Great Lake’s effective tax rate?

  Evaluate the amount of net loss

Evaluate the amount of net loss that Jones can report on its income statement for the year

  Illustrate what are the tax consequences to daisy

To lower the value of its stock, Ostrich distributes $4 million cash to Daisy (sufficient E & P exists to cover the distribution). At a later date, Daisy sells Ostrich for $26 million. Illustrate what are the tax consequences to Daisy on the sale?

  Evaluate free assets

For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $170,800?

  Illustrate what is the total amount of overhead costs assign

Assume an activity-based costing system is used and that the number of setups and the number of components are identified as the activity-cost drivers for overhead. Illustrate what is the total amount of overhead costs assigned to the standard mode..

  Computation of net income from data

Computation of net income from given data and Use the following information to calculate the company's accounting net income for the year.

  Annual pension costs will include a credit to pbo

There were no other pension related costs. The journal entry to record the annual pension costs will include a credit to the PBO for?

  Discuss how a company board of directors can impact

Discuss how a company’s board of directors can impact the operational and financial performance of the company. Determine whether or not Triarc’s acquisition of Wendy’s through a stock swap was good for either company and state your rationale.

  Prepare journal entries to account for the transactions

Prepare journal entries to account for the transactions and information described in Exhibits 1-2 and 1-3 and prepare a revised statement of financial position after the journal entries prepared in Required 1 have been recorded.

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