Qualified small business, In 2000 Ms. Ennis, a head of

Qualified small business

Assignment Help Financial Accounting

Reference no: EM13912849

In 2000 Ms. Ennis, a head of household, contributed $50,000 in exchange for 500 shares of Sets stock. Seta is a qualified small business. This year Ms. Ennis sold all 500 shares for $117,400. Her only other investment income was an $8,600 long term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $590,000.

A. Compute Ms. Ennis' income tax and Medicare contribution tax for the year.

B. How would the computation change if Ms. Ennis had acquired the Seta stock in 2012 instead of 2000.

Reference no: EM13912849

Questions Cloud

Prepare a trial balance : Prepare a trial balance for the following data

Accountant for small business : An accountant for small business is suspected of writing checks to "dummy" vendors and collecting the money himself. After a thorough investigation of the company

Direct labor workforce : What is the total estimated direct labor cost for July assuming the direct labor workforce is adjusted to match the hours required to produce the forecasted number of units produced

Shareholder to purchase : In 2004 Mr. EF, a single taxpayer, contributed $45,000 in exchange for 500 shares of DB stock. In 2007, he paid $40,000 to another shareholder to purchase 1,000 more DB shares. All DB's stock qualified as section 1244 stock when it was issued.

Qualified small business : In 2000 Ms. Ennis, a head of household, contributed $50,000 in exchange for 500 shares of Sets stock. Seta is a qualified small business. This year Ms. Ennis sold all 500 shares for $117,400.

Chart of accounts : A. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles.

Produces and distributes : Gabriel Co. produces and distributes semiconductors for use by computer manufacturers.

Common stock outstanding : The company had 45,000 shares of common stock outstanding during the year. In addition, the company issued 3,000 shares of $50 par value preferred stock on January 3, 2016.

The estimated product warranty : The estimated product warranty is 4% of sales. Assume that sales were $700,000 for January.

User Account

All Pages