User Account

All Pages

What would be the share of this year

Assignment Help Accounting Basics
Reference no: EM132663472

Problem - The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch is owned equally by four shareholders. From supplemental data, you obtain the following information about items that are included in book income.

Selling expenses ($21,200)

Tax-exempt interest income 3,000

Dividends received 9,000 § 1231 gain 7,000

Depreciation recapture income 11,000

Net income from passive real estate rentals 5,000

Long-term capital loss (6,000)

Salary paid to owners (each) (12,000)

Cost of goods sold (91,000)

Required -

a. Compute Kitsch's nonseparately stated income or loss for the tax year.

b. What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders?

c. What is James Billings's share of tax-exempt interest income, if any? Is the income taxable to him this year?

Reference no: EM132663472

Questions Cloud

Networking team to change all wireless access points : As a security expert, you have directed a networking team to change all wireless access points from using WEP encryption to WPA2.
Concepts support protecting applications : Much has been made of the new Web 2.0 phenomenon, How do secure software development concepts support protecting applications?
What is his share of the long-term capital gain : Calculate Maul's nonseparately computed income or loss. If Carl is a 40% owner of Maul, Inc., what is his share of the long-term capital gain
What do you think about digital rights management : Are you a consumer or a user of technology? What do you think about Digital Rights Management? What do you think of EME? Why are people opposed to it?
What would be the share of this year : What would be the share of this year's nonseparately stated income or loss items for James Billings, one of the Kitsch shareholders
Identify at least four tax issues : Jackson reports income from several other sources. Identify at least four tax issues related to the effects of the S corporation loss on Jackson's tax return
Combining multiple anomaly detection techniques : Discuss techniques for combining multiple anomaly detection techniques to improve the identification of anomalous objects.
Evaluate the effectiveness of the clustering : How do you use "pair wise" plots to evaluate the effectiveness of the clustering?
Compute the Sharrod new basis in the Kaiwan stock : During the year, Sharrod's share of a Kaiwan long-term capital gain (LTCG) is $5,000, Compute the Sharrod new basis in the Kaiwan stock

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd