Reference no: EM131116799
Question 1: Mabel and Alan, who are in the 35% tax bracket, recently acquired a fast-food franchise. Each of them will work in the business and receive a salary of $175,000. They anticipate that the annual profits of the business, after deducting salaries, will be approximate $450,000.
The entity will distribute enough cash each year to Mabel and Alan to cover their Federal income taxes associated with the franchise.
a. What amount will the entity distribute if the franchise operates as a C corporation?
b. What amount will the entity distribute if the franchise operates as a S corporation?
c. What will be the amount of the combined entity/owner tax liability in (a) and (b)?
Question 2: Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Kantner's net deferred tax asset or net deferred tax liability at year-end Assume a 34% corporate tax rate and no valuation allowance.
|
Tax Debit/(Credit)
|
Book Debit/
|
(Credit)
|
|
Assets
|
|
|
|
Cash
|
$1,000
|
$1,000
|
|
Accounts receivable
|
9,000
|
9,000
|
|
Buildings
|
850,000
|
850,000
|
|
Accumulated depreciation
|
-700,000
|
-620,000
|
|
Furniture & Fixtures
|
40,000
|
40,000
|
|
Accumulated depreciation
|
-10,000
|
-8,000
|
|
Total assets
|
$190,000
|
$272,000
|
|
Liabilities
|
|
|
|
Accrued warranty expense
|
$ - 0 -
|
($40,000)
|
|
Note payable
|
-16,000
|
-16,000
|
|
Total Liabilities
|
($16,000)
|
($56,000)
|
|
Stockholders' Equity
|
|
|
|
Paid-in capital
|
($50,000)
|
($50,000)
|
|
Retained earnings
|
($124,000)
|
-166,000
|
|
Total liabilities and stockholders'equity
|
($190,000)
|
($272,000)
|
|
Per-unit cost of production
: Suppose that an economy produces 300 units of output, employing the 50 units of input, and the price of the input is $9 per unit. The level of productivity and the per-unit cost of production are, respectively:
|
|
Federal government runs a budget deficit
: When federal government spending amounts to less than tax revenues, the federal government runs a budget deficit.
|
|
Problem regarding the my movie-your money
: An independent movie producer with a modest but loyal fan base is short of funds for her next movie. Knowing that a bank loan is an unrealistic option, she is considering crowdfunding. But she is not very familiar with it or how to go about start..
|
|
Opportunity cost of producing gloves and hats
: a. What is each country's opportunity cost of producing gloves and hats? b. If the countries could, should they trade? Provide one (1) supporting fact to support your position.
|
|
What amount will the entity distribute
: What amount will the entity distribute if the franchise operates as a C corporation? What amount will the entity distribute if the franchise operates as a S corporation?
|
|
Define the relevant labor market for insurance claims
: You are a compensation analyst for Worry-Not Insurance Company, which is located in Hartford, Connecticut. Define the relevant labor market for insurance claims adjusters and for data entry clerks. Describe the rationale for your definitions.
|
|
The balance sheet of lamont bros
: (a) What portions of Lamont's assets were provided by debt, contributed capital, and earned capital? Reduce contributed capital by the cost of the treasury stock.
|
|
What is the pump head and motor current
: What is the pump head and motor current if the pump speed decreases to 1,200 rpm?
|
|
Summarize the information that dispelled these misconception
: Having identified these challenges, explain what you, as an early childhood professional and advocate, would like to do now and/or in the future to have a positive impact on children's health, safety, and nutrition.
|