What is tex ordinary income

Assignment Help Accounting Basics
Reference no: EM13131399

Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2008. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Tex's ordinary income for 2009?

a.$0.

b.$50,000

c.$100,000

d.$200,000

Reference no: EM13131399

Questions Cloud

Prepare appropriate journal entry in debt service fund : On July 1, a city issued, at par, $100 million in 6 per-cent, 20-year general obligation bonds. It established a debt service fund to account for resources set aside to pay interest and principal on the obligations.
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?
The preparation is generally carried out in a neutral medium : When CuCN is used in the Sandmeyer reaction, the preparation is generally carried out in a neutral medium. Can you offer an explanation of why this is done?
Sekonda xpose : Sekonda Xpose Watch Range Shark 1999 Advertisement and James Bond Omega watch advertisement. please evaluating two advertisements which advertisement more effective?
What is tex ordinary income : Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Tex's ordinary income for 2009?
Fits your overall interests : If you do not see a book that fits your overall interests, please advise me immediately so that we can secure a book that will do so.
Relationship between business and society : What recent (since 2000) high-profile incidents-- corporate scandals, economic and environmental crises, etc.-- have raised serious questions about the relationship between business and society?
Explain what is meant by the test data approach : Explain what is meant by the test data approach. What are the major difficulties with using this approach? Define parallel simulation with audit software and provide an example of how it can be used to test a client's payroll system.
Explain balance sheet presentation of the fair value : Explain balance sheet presentation of the fair value adjustment for Perry’s short-term investment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the total package contribution margin

Standlar Company makes wireless speakers. The standard model price is $360 and variable expenses are $210. The deluxe model price is $500 and variable expenses are $300.

  Consolidated balance sheet at the date of takeover

Bailey,Inc.,buys 60 percent of the outstanding stock of Luebs,Inc.,in an acquisition that resulted in the recognition of goodwill. Luebs owns a piece of land that cost $200,000 but was worth $500,00 at the acquisition date. What value should be at..

  Solving rate of return with excel

You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700.

  Compute operating income for april, may and june

Mile-High Foods, Inc., was formed in March 2011 to provide prepackaged snack boxes for a new low cost regional airline beginning on April 1.

  Preparing a statement of cash flows

In preparing a statement of cash flows for the year ended December 31, 2011, for Cole Company, cash flows from financing activities would reflect

  Operating income change problem

Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,000 units?

  Pay cash dividends

Tracy co. owns 4,000 of the 10,000 outstanding shares of penn corp. common stock. during 2010, penn earns 120,000 and pays cash dividends of 40,000. if the beginning balance in the investment account was 240,000 the balance at december 31, 2010 sh..

  Calculate the npv and profitability index

Calculate the NPV, and the Profitability Index (PI) for this project. Should this project be undertaken?

  How jeff could use standards for planning purposes

Why were some of Jeff's friends who worked with him from the beginning not very excited about a change to a standard cost system.

  System of internal accounting control

The FCPA requires that a system of internal accounting control:

  Determining corporation and partnership

Calculate the tax disadvantage to organizing a U. S. business today, after passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003, as a corporation versus a partnership under the following conditions.

  What is the revenue, cost, and gross profit

The Rushing Construction Company obtained a construction ontract to build a highway and bridge over the Snake River It was estimated at the biginning of the contract that it would take three years to complete the project at an expected cost of $50..

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