Reference no: EM13975589
Inc., a calendar year corporation incorporated in January 2006. For each of the years 2006 2010, KAD reported taxable income (loss) before net operating loss deductions as follows:
2006 ......... $15,000
2007 ......... (20,000)
2008 ......... 10,000
2009 ......... 30,000
2010 ......... (75,000)
When filing its tax returns for both 2007 and 2010, KAD did not elect to give up the carry back of its losses. KAD's taxable income before the net operating loss deduction for 2011 is $80,000.
1. What is the amount of net operating loss carry forward that KAD should deduct on its tax return for 2011?
2. How much can KAD carry forward to years after 2011, if anything?
3. Assume the same facts as in the 1st question except that KAD elected "S" status on March 1 2011 with a retroactive date. For the year 2011 KAD incurred a net operating loss from operations of ($40000), instead of $80000 of income in the 1st question.How much can the stockholders of KAD inc. deduct on their individual income tax returns in 2011 as a result of the net operating loss incurred in 2012?
Additional Requirements :
Assume $5000 of accumulated earnings & profits from the years that KAD was a "C" corp, and the stockholders have a combined total basis of $30000 in the corp. and have also personally guaranteed a $10000 loan made to the corp. by a local bank.
1) He should deduct $40,000 on its tax return for 2011.
2) He would deduct a loss of $80000 as a result of net operating loss incurred in 2012.
|
Determine the probability average waiting time
: For a simple random sample of 36 recent customers, invoke the central limit theorem and determine the probability that their average waiting time was at least 4.0 minutes.
|
|
Find the probability that the truckload of drills
: Unknown to the purchasing manager, the drills on the truck require an average of 295 watts, with a standard deviation of 12 watts. Stating any additional assumptions you are using, find the probability that the truckload of drills will be rejected..
|
|
Identify three alternative methods to the dividend discount
: Identify three alternative methods to the dividend discount model for the valuation of companies.
|
|
Problem regarding the total luggage weight
: From past experience, an airline has found the luggage weight for individual air travelers on its trans-Atlantic route to have a mean of 80 pounds and a standard deviation of 20 pounds.
|
|
What is the amount of net operating loss carry forward
: What is the amount of net operating loss carry forward that KAD should deduct on its tax return for 2011?
|
|
Computing confidence interval for the population mean
: For a simple random sam- ple of 20 bottles of toner, the average was 1535 pages, with a standard deviation of 30 pages. Making and stating whatever assumptions you believe are necessary, con- struct and interpret the 95% confidence interval for th..
|
|
What is the estimated mean revenue for each project
: What is the estimated mean revenue for each project with the programmers allocated to it in Part 1 and in total*? What is estimated standard deviation of revenue for each and in total*? Assume, for now, that programs cannot be terminated
|
|
Find direction of force per unit length on the third wire
: Suppose a third long, straight wire, parallel to the other two, passes through point P (Figure 1) , and that each wire carries a current6.00A. Let a=40.0cm and x=60.0cm. Find the magnitude of the force per unit length on the third wire, if the c..
|
|
Design the incentive compensation formula for management
: For example, would the formula use EVA or change in EVA as the principle variable? How much of total compensation should be subject to EVA performance?
|