The net investment income tax on dividend

Assignment Help Accounting Basics

Reference no: EM131067225

Jabar Corporation. a C corporation. projects that It will have taxable income of 5265,000 bertha incurring any tease expenses. labia's tax rated 35 perceM Abdul, Jabars sole shareholder. has* marginal tax rate of 39 6 percent on owl nary moonily and 20 percent on dividend Mown Jabar always distributes all of its aftentax earrengs to Abdul.

•. Mai ts the amount of the overall tax (corporate loyal • shareholder woo on jab., Corp s 5265.000 protease evens. income 0 Jab.^, Corp disynbutes all of its after'411x aaaaaps to as solo sharehodcr. Abdul (include the 3.6% net investment income tax on editiond and rental income.)? (Input all answers as • positive number and round your answers to the nearest whole dollar.)

	No lease payment
Taxable (income before lease payment	No lease payment
Lease payment
Taxable Income
Entity tax
After-tax entity earnings
Abduls tax on dividends
Abdurs lax on lease payment
Overall lax	3 0

b. What Is the amount of the overall tax on Jabs. Carp d 5265 000 prthease expense Income later leases equipment from Abdul at a cost or 527 200 'or the year (etude the net investment income tax on dividend and rental Income )? (Input all answers as a positive number and round your answers to the nearest whole dollar.)

	$27200 Lease Deduction
Taxable income before lease payment
Lease Payment
Taxable income
Entity tax
After-tax entity earnings
Abdul's tax on &Mends
Abdurs tax on lease payment
Overall tax	$ 0:

c. What is the amount of the overall tax on Jabar Corp.'s $265,000 prelesse expense ir•come rfJabar Corp. leases equipment from Abdul at a cost of 827.200 for the year but the IRS determines that the fair market value at the lease payments is $19000 (include the net investmeM Income tax on dividend and rental income.)' (Input all answers ass positive number and round your answers to the nearest whole dollar.)

	112,000 Lease Deduction
taxable Income before lease payment
Lease payment
Taub% Income
Entity tax
After-tax entity earnings
Abdul's tax on dividends
Abudls tax on lease payment		i
iOverall tax	8	0'

Reference no: EM131067225

Questions Cloud

Temperature on the rate of reaction : How does enzymes effects the temperature on the rate of reaction?

What is the component cost for preferred stock : What are the advantages and disadvantages of using preferred stock in the capital structure? What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?

Processes of respiration and photosynthesis : Compare and contrast the processes of respiration and photosynthesis?

Disadvantages of using preferred stock in capital structure : Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of usi..

The net investment income tax on dividend : Jabar Corporation. a C corporation. projects that It will have taxable income of 5265,000 bertha incurring any tease expenses. labia's tax rated 35 perceM Abdul, Jabars sole shareholder. has* marginal tax rate of 39 6 percent on owl nary moonily a..

How profitable do you think the musicians are : How profitable do you think the musicians are

Engaging in earnings management : "Discuss conditions under which managers are likely to have incentives to report lower earnings i.e. engaging in earnings management. You may compare and contrast these conditions under which managers likely ave incentives to report higher earnings."

Calculate the NPV for both conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $200,000, has a four-year life, and requires $65,000 in pretax annual operating costs. Calculate the NPV for both conveyor belt sys..

What is this projects equivalent annual cost : A five-year project has an initial fixed asset investment of $335,000, an initial NWC investment of $35,000, and an annual OCF of −$34,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

User Account

All Pages