Premium Essay

Keller Acct 553 Homework

In: Business and Management

Submitted By navyhnm943
Words 371
Pages 2
ACCT553
Week 4 Homework
_________________________________________________________
Please provide your answer to each question in the space provided below.
When finished, submit to the DropBox.

Chapter 14 1. Please describe the concept of "double taxation" and discuss which entity(ies) are subject to this type of taxation. (5 pts)
Corporations other than S Corps are considered double taxed. The corp is taxed on income and then if the earnings are paid out to shareholders that money is taxable income to the shareholder. If any of it was deductible then perhaps it wouldn’t be double taxation but this is not the case. However, for taxpayers in the 10% tax bracket they are not taxed on the dividend income.

2. What type of taxpayers are considered "eligible" taxpayers with regard to special ordinary loss treatment of IRC Section 1244 stock? (5 pts.)
A taxpayer is considered eligible if; the individual sustaining the loss who was issued stock by a small business or corp and,
An individual who is a partner in a partnership at the exact time that the stock was acquired from the issuance of a small business. The stock must have been continually held from date of issuance in order to claim a deduction under section 1244. A corporation, any trust or estate is not entitled to such deductions.

3. Please describe how the treatment of capital gains(losses) differ for a C Corporation as compared to an Individual. ( 5 pts.)
Professor,

A main difference is that for Corps, no special treatment is given for LT Capital Gains. There is also no deduction for capital losses that exceed capital gains for corps. The process is still similar for individuals in that the losses can be netted against the gains(not ordinary income), but anything above that for the corp is just taken as a loss.

4. Please describe the concept of "Depreciation recapture". ( 5…...

Similar Documents

Premium Essay

Acct 553 Wk 5 Homework

...Questions: 14-24 and 14-51, 17-1 and 17-24 Problems (Show your work.): 14-52, 17-40, and 17-49 Chapter 14: 24. What is the purpose of the dividends received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? The tax deduction received by a corporation on the dividends paid to it by companies in which it has an ownership stake. Generally Corporation pays taxes on its income before distributing dividends. So if this deduction is not allowed the corporation paying dividend pays taxes, the corporation receiving dividends pays taxes on it again and the shareholders receiving this pays tax again so it leads to triple taxation. U.S. corporations are generally entitled to a deduction for dividends received from certain other domestic corporations. If the recipient corporation owns less than 20% of the distributor's stock, the recipient corporation is allowed a deduction of 70% of dividends paid out of distributor's tax earnings and profits (E&P). When the recipient of the dividend has at least 20% but less than 80% ownership by vote or value in the distributor, an 80% DRD is allowed under Sec. 243(c). Finally, Sec. 243(a)(3) allows a 100% deduction for "qualifying dividends," when a corporation receives dividends from another corporation that is a member of the same affiliated group. 51. What is the purpose of the reconciliation of taxable income with book income? Generally, Sec. 446 requires taxable income to be......

Words: 1618 - Pages: 7

Premium Essay

Acct 553 Week 2

...Week 2 homework 4/25 Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2012 5,000+4,000=9,000 that will be included Rent received in January 2012, but due in December 2011 5,000 Rent received in December 2012, not due until January 2013 4,000 Total Income 9,000 4/32 Arnold and Barbara Cane were divorced in June 2012. Pursuant to the divorce decree, Arnold is obliged to perform as follows A. Not affect their Taxable Income B. Not affect their taxable Income. Mortgage Interest is not referenced. Payments are not considered alimony. C. Barbara doesn’t need to file alimony 9,000 is not tax deductible 5/26 Fluent, an investor in stocks and bonds, wanted to increase his portfolio but wanted to minimize his tax liability on the income from the bonds. EE bonds, because Interest received on bonds is generally excludable from gross income. They are an accrual-type security, which means interest is added to the bond monthly and paid when you cash in the bond. This includes no state or local taxes on series ee bonds, as well as the opportunity to generate tax deferred earnings by exchanging the bonds for other types. 6/29 Which of the following trade or business expenditures of Ajax Inc. If an expenditure is not deductible, explain why it is not a valid deduction A salary is an expenditure because the amount......

Words: 408 - Pages: 2

Premium Essay

553 Homework Assignment

...ACCT553 Week 2 Homework _________________________________________________________ Please provide your answer to each question in the space provided below. When finished, submit to the DropBox. ID # D40300930 Name : Rahim Ramzan Ali Gilani Chapter 4 1. Your brother is short on cash and cannot pay his rent this month. You pay his rent for him. Is this taxable income to your brother? Do you get a deduction? (2 pts) No, this would not be taxable income to my brother. A person cannot reassign income to another person. It would fall under the gift category which has its own set of rules. No, you would not have a deduction for your taxes. In fact if the amount you gave your brother was over $13,000 you would have to pay a gift tax 2. Which of the following items would be excluded from income? (a) $100 bill found under the sugar caddy at the restaurant (b) Inheritance of a car from your grandmother valued at $5,000. (c) Loan from your father-in-law to start your business, (d) Child Support received totaling $16,500. (4 pts) The inheritance of a car from your grandmother valued at $5,000 would be excluded from income as long as the $5,000 was under the caps. The tax code where you would find this would be under sections 101-139. Chapter 5 3. Shaun & Kayla earned the following in 2013: Interest on a Savings account of $36, Interest on a U.S. Series EE Savings Bond of $25, Interest on a CD that has not matured yet of $20. How much taxable interest......

Words: 554 - Pages: 3

Premium Essay

Acct 553 Week 1 Homework

...ACCT553 Week 1 Homework _________________________________________________________ Please provide your answer to each question in the space provided below. When finished, submit to the DropBox. Chapter 1 (5 pts) 1. Briefly discuss the purpose of the Sixteenth Amendment. The sixteenth amendment, which was passed by Congress in 1909, grants the power to collect federal income taxes (Smith et al. 2015). Congress is given the authority to collect tax on any source of income, whether directly or indirectly. All individuals, and businesses, are required to pay federal taxes. Prior to the sixteenth amendment, Congress was only able to levy tariffs on imported goods. Congress tried to tax individuals on their property for additional revenue, but this tax was considered unconstitutional in the Pollock Case (Hart 2002). The reason for this being unconstitutional, was because it was deemed as an unapportioned tax, which was not allowed by the Constitution at the time. There was a large disparity between the rich and poor class, and income tax was intended to “level the plainfield”. The original purpose of the sixteenth amendment was to provide a tax relief to wage earners (Hart 2002). Now that all wages are taxed, whether apportioned or not, taxing the rich was supposed to assist the lower classes while generating revenue for the government. Hart, Phil. "Phil Hart -- Constitutional Income: The Purpose of the 16th Amendment. Part1."Phil Hart -- Constitutional Income: The......

Words: 872 - Pages: 4

Premium Essay

Acct 553 Week 7 Homework

...ACCT553 Week 7 Homework – Tanushant Sharma _________________________________________________________ Please provide your answer to each question in the space provided below. When finished, submit to the DropBox. Chapters 10-11-12 1. Please explain the distinction between a "realized" gain and a "recognized" gain. (5 pts) Difference between: Recognized Gain: Profit from sale of asset, which is reported for income tax purpose. It is the difference between basis of asset and the sale price. Realized Gain: Realized gain is the amount which is actually received from the sale of asset. Cost, which is associated with the sale of asset, is deducted while calculating realized gain. All realized gains are recognized gains unless and otherwise specified. As per IRS if an asset is sold after holding it for one year or more then the gain on sale will be long term gain. 2. Are there any limits to the deductibility of losses on sales and exchanges between related parties? What code section defines this limitation? (5 pts.) Deduction for the losses on sale and exchange is not allowed if the sale or exchange is between related parties takes place directly or indirectly. Exception to this is distribution of assets in case of complete liquidation. The limits are mentioned in Sec 267 of U.S. Code. As per this code if partnership, corporation, estate or trust is holding interest directly or indirectly then it will be treated as the partners, beneficiaries etc. are holding......

Words: 513 - Pages: 3

Free Essay

Acct 567 Entire Course (Keller)

...ACCT 567 , ACCT 567 Phoenix, ACCT 567 Uop help, ACCT 567 Week 3, ACCT 567 Individual Assignment , ACCT 567 Learning team Assignment, ACCT 567 Product, ACCT 567 A Graded , ACCT 567 Summary, ACCT 567 Study Guide, ACCT 567 Questions , ACCT 567 Answered , ACCT 567 Solution, ACCT 567 Final Guide, ACCT 567 Final Exam, ACCT 567 A++ Work, ACCT 567 A Graded, ACCT 567 Homework, ACCT 567 help, ACCT 567 week 1 DQ, ACCT 567 week 2 DQ, ACCT 567 week 3DQ, ACCT 567 week 4 DQ, ACCT 567 week 5DQ, ACCT 567 week 6 DQ, ACCT 567 week 1 Assignment, ACCT 567 week 2 Assignment, ACCT 567 week 3Assignment, ACCT 567 week 4 Assignment, ACCT 567 week 5 Assignment, ACCT 567 All Individual and Learning Team Assignments, ACCT 567 Full Course , ACCT 567 Whole Class ACCT 567 Entire Solution, ACCT 567 University of Phoenix Learning Team Assignment, ACCT 567 Checkpoint, ACCT 567 All Weeks , ACCT 567 Week 1-5, ACCT 567 Axia College, ACCT 567 online class, ACCT 567 week 3DQ, ACCT 567 week 4 DQ, ACCT 567 week 5DQ, ACCT 567 Syllabus, ACCT 567 Version, ACCT 567 Week 1, ACCT 567 Week 2, ACCT 567 Week 3, ACCT 567 Week 4, ACCT 567 Week 5, ACCT 567 week 1 DQ, ACCT 567 week 2 DQ,, ACCT 567 Assignment 1 , ACCT 567 Assignment 2, ACCT 567 Assignment 3 , ACCT 567 Week 1-6, ACCT 567 Assignment4 , ACCT 567 DQs, ACCT 567 Dq 1, ACCT 567 DQ 2, ACCT 567 Complete Course, ACCT 567 Entire Class, ACCT 567 Whole Tutorial, ACCT 567 Work, ACCT 567...

Words: 497 - Pages: 2

Premium Essay

Acct 553- Week 1 Hw

...ACCT553 Week 1 Homework _______________________________________________________ Please provide your answer to each question in the space provided below. When finished, submit to the DropBox. Chapter 1 (5 pts) 1. Briefly discuss the purpose of the Sixteenth Amendment. The 16th amendment states that congress has the power to indirectly or directly tax income from any source derived. The purpose of the sixteenth amendment is to allow the government to create income taxes. The 16th amendment was adopted in 1903, when three-fourths of the states ratified the agreements. If these taxes are not paid, the government has the night to take income or land as payment. Chapter 2 (5 pts) 2. Explain the two "safe harbors" available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax. The first safe harbor rule states that as long as the taxpayers quarterly payments equals 90% of what is due on the tax return they can escape a penalty. The second safe harbor allows the taxpayer to avoid a penalty as long as they pay 100% of the amount from the previous year’s tax return. If the taxpayer’s AGI exceeds $150,000, they must pay 110% of the previous year’s return. Chapter 3 (5 pts) 3. Explain the distinction between an "above the line" deduction (i.e. FOR AGI) and a below the line deduction (i.e. FROM AGI). Which one is more valuable? Above-the-line, or For AGI deductions, are taken out before your AGI is calculated. Above- the-line deductions include......

Words: 403 - Pages: 2

Premium Essay

Acct 344 Week 5 Homework

...ACCT 344 WEEK 5 HOMEWORK A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-5-homework Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACCT 344 Week 5 Homework, Part A: Part A: Product I = 100 ÷ (100 + 400) * $4,000 = $800 Product II = 400 ÷ (500) * $4,000 = $3,200 Product I ($800) + Product II ($3,200) = $4,000 Part B: Income Statement: Product I Product II Total Sales $2,000 $6,000 $8,000 Cost of Goods Sold $800 $3,200 $4,000 Gross……… Part A: Total Cost: $4,000.00 Breast: 3,000 Units, 50% of Total Units, $2.00 per Pound Wings: 1,000 Units, 16.667% of Total Units, $0.50 per Pound Thighs: 2,000 Units, 33.333% of Total Units, $1.00 per Pound Total Units: 6,000, Combined Price $3.50 per Pound Cost Sale Gross Profit Gross Profit Percentage Breast $2,000.000 $6,000.00 $4,000.000 66.667% Wings $666.667 $500.00 $(166.667) -33.333% Thighs $1,333.333 $2,000.00 $666.667 33.333% Work: Breasts Cost = $4,000*.50 = $2,000 Breasts Sale = 3000 Units * $2.00 per Unit = $6,000 Breasts Gross Profit = $6,000 – $2,000 = $4,000 Breasts Gross Profit Percentage = $4,000 ÷ $6,000 = 66.667% Wings Cost = $4,000*.16667 = $666.667 Wings Sale = 1,000 Units * $0.50 per Unit = $500 Wings Gross Profit = $500 – $666.667 = -$166.667 Wings Gross Profit Percentage = -$166.667 ÷ $500 = -33.333% Thighs Cost = $4,000*.33.333 = $1,333.333 Thighs Sale = 2000 Units * $1.00 per Unit = $2,000 Thighs Gross Profic. The decision to accept the offer is......

Words: 376 - Pages: 2

Free Essay

Acct 553 Week 4 Assignment Youdecide

...ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE To purchase this visit following link: http://www.activitymode.com/product/acct-553-week-4-assignment-youdecide/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE ACCT 553 Week 4 Assignment YouDecide ACCT 553 Week 4 Assignment YouDecide Activity mode aims to provide quality study notes and tutorials to the students of ACCT 553 Week 4 Assignment YouDecide in order to ace their studies. ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE To purchase this visit following link: http://www.activitymode.com/product/acct-553-week-4-assignment-youdecide/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE ACCT 553 Week 4 Assignment YouDecide ACCT 553 Week 4 Assignment YouDecide Activity mode aims to provide quality study notes and tutorials to the students of ACCT 553 Week 4 Assignment YouDecide in order to ace their studies. ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE To purchase this visit following link: http://www.activitymode.com/product/acct-553-week-4-assignment-youdecide/ Contact us at: SUPPORT@ACTIVITYMODE.COM ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE ACCT 553 Week 4 Assignment YouDecide ACCT 553 Week 4 Assignment YouDecide Activity mode aims to provide quality study notes and tutorials to the students of ACCT 553 Week 4 Assignment YouDecide in order to ace their studies. ACCT 553 WEEK 4 ASSIGNMENT YOUDECIDE To purchase this visit following......

Words: 512 - Pages: 3

Premium Essay

Acct 625 Week 4 Homework

...ACCT 625 Week 4 Homework Click Link Below To Buy: http://hwaid.com/shop/acct-625-week-4-homework/ Question 1. The following information relates to Hudson City for its fiscal year ended December 31, 2014. • On January 31, 2014, the city purchased as an investment for its debt service fund a fifteen-year, 6 percent,$1 million bond for $998,000. During the year it received $30,000ininterest.Atyear-endthefairvalueofthebond was $999,500. • On December 31, 2013, the Foundation for the Arts pledged to donate $1, up to a maximum of $1 million, for each $3 that the museum is able to collect from other private contributors. The funds are to finance construction of the city-owned art museum. During 2014, the city collected $600,000 and received the matching money from the Foundation. In January and February 2015 it collected an additional $2,400,000 and also received the matching money. • During the year the city imposed license fees on street vendors. All vendors were required to purchase the licenses by September 30, 2014. The licenses cover the one-year period from October 1, 2014, through September 30, 2015. During 2014 the city collected $240,000 in license fees. • The city sold a fire truck for $40,000 that it had acquired five years earlier for $250,000. At the time of sale the city had charged $225,000 in depreciation. • The city received a grant of $2 million to partially reimburse costs of training police officers. During the year the city incurred......

Words: 1049 - Pages: 5

Free Essay

Acct 220 Week 4 Homework

...ACCT 220 Week 4 Homework Click Link Below To Buy: http://hwaid.com/shop/acct-220-week-4-homework/ • Compute the interest for the following notes and assume at 360 day year for all quizzes, homework, etc. Date of Note Principle Interest Rate (%) Term Interest July 1 $100,000 10% 90 Days January 1 $70,000 8% 120 Days September 1 $200,000 4% 60 Days • On June 1, 2015, Hardy and Company sold merchandise on account to Laurel Company for $16,000 with terms of 2/10 net 30. On June 30, Laurel Company gave Hardy a 10% Promissory Note to settle the account. Make the journal entries to record the sale and settlement of the account receivable. Date Account Debit Credit • The financial statements of Lawn Mowers Inc. report beginning accounts receivable of $100,000 and ending accounts receivable of $105,000. Net credit sales were $1,200,000 for the year. Calculate the accounts receivable turnover and average collection period in days. Use a 365 day year. 1. Accounts Receivable Turnover (b) Average Days To Collect • Lost in The Woods Trading Company borrows $70,000 at 3% interest from the Bonnie and......

Words: 296 - Pages: 2

Premium Essay

Acct 220 Week 6 Homework

...ACCT 220 Week 6 Homework Click Link Below To Buy: http://hwaid.com/shop/acct-220-week-6-homework/ • An accounting intern recently made the following entries. May 2 Cash $140,000 Common Stock $140,000 (Issued 10,000 shares of common stock of $10 stated value at $12 per share.) May 10 Cash $700,000 Preferred Stock $700,000 (Issued 10,000 shares of $50 par value preferred stock for $70 per share.) May 15 Common Stock $20,000 Cash $20,000 (Purchased 1,000 shares of common stock for the treasury for $20 per share.) May 31 Cash $12,500 Common Stock $10.000 Gain on Sale of Stock $2,500 (Sold 500 shares of treasury stock at $25 per share.) Based upon the explanation, make the correct entry for each of the above entries. No further explanation required. Date Account Dr. Cr. • Mary Me Not Corporation has $10 par value common stock is actively traded at a market price of $20 per share. Mary issues 5,000 shares to purchase land advertising for sale at $120,000. Journalize the issuance of the stock in exchange for the land. • On August 15, Joe Rainey Corporation purchases 500 shares of par value common stock for the treasury at a cash price of $10 per share. On November 19...

Words: 256 - Pages: 2

Free Essay

Acct 323 Homework 5 Solutions

...ACCT 323 Homework 5 Solutions Click Link Below To Buy: http://hwaid.com/ . Umair sold some equipment he used in his business on August 29, 2014, that was originally purchased for $70,000 on November 21, 2013. The equipment was depreciated using the 7-year MACRS method for a total of $18,574. Assume there is no additional netting of gains and losses for this taxpayer. a. Assume Umair sold the equipment for $50,000: (1) What is the amount of realized gain or loss on the sale of the equipment? (2) Is the nature of the gain or loss considered ordinary or long-term? b. Assume Umair sold the equipment for $60,000: (1) What is the amount of realized gain or loss realized on the sale of the equipment? (2) Is the nature of the gain or loss considered ordinary or long-term? 2. Alice owns undeveloped land with an adjusted basis of $140,000. She sells the property to George for $185,000. a. What is Alice’s realized and recognized gain? b. What IRC section does the gain on the property apply? c. If the land is used in a trade or business, what IRC section does the gain on the property apply? 3. Using the following independent situations, answer the following questions: Situation 1 Clara received from her Aunt Sona property with an FMV at the date of the gift of $40,000. Aunt Sona purchased the property five years ago for $35,000. Clara sold the property for $43,000. Assume Aunt Sona does not have MAGI of over $200,000. a . Whaat .i s the basis to Clara? b .......

Words: 525 - Pages: 3

Premium Essay

Acct 323 Week 4 Homework

...ACCT 323 Week 4 Homework Click Link Below To Buy: http://hwaid.com/shop/acct-323-week-4-homework/ 1) In the current tax year, Gunther earned $125,000 from his job as a civil engineer. In addition, he received $30,000 of income from Activity A, and lost $40,000, and 20,000 from Activities B and C respectively. Activities A, B, and C are passive activities that Gunther acquired in the current year. What amount of loss may Gunther deduct on his current year taxes with respect to each activity? What amount of loss, if any, must be carried over to the subsequent year for each activity? 2) During the current year, Beth and Bill, who file a joint return, incurred the following items of income and loss: Salary $ 130,000 Activity A (passive) 10,000 Activity B (rental real estate/nontrade or business) (30,000) Activity C (rental real estate/nontrade or business) (20,000) Beth and Bill actively participate in activities B and C, and they own 100% of each rental property. a) What is their AGI for the year? b) What is the amount of suspended losses, if any, that may be carried over with respect to each activity? 3) In the current tax year, Neil’s personal automobile was totaled in a traffic accident. Neil had purchased the automobile two years earlier for $28,000. The FMV of the automobile just prior to the accident was $18,000. The automobile is now worthless. Neil received a $14,000 insurance check in settlement of his accident claim. Later that......

Words: 1133 - Pages: 5

Premium Essay

Acct 553 Wk5 Hw

...ACCT 553 Week 5 Assignment Questions 14-24 What is the purpose of the dividends-received deduction? What corporations are entitled to claim this deduction? What dividends qualify for this deduction? The purpose of the dividends received deduction is so that corporations would not be taxed at a corporate level a shareholder level or if when dividends or a recipient corporation. The dividends qualifying for the dividends-received deduction are those dividends paid by domestic corporations subject to the corporate income tax. Only dividends paid out of a corporation's earnings and profits qualify for the dividends-received deduction. Dividends-received deduction is equal to the relevant percent (70% or 80%, depending on ownership) times the lesser of: (1) dividends received from taxable, unaffiliated domestic corporations or (2) the firm's taxable income, as adjusted Page 60 of bookshelf. 14- 51 What is the purpose of the reconciliation of taxable income with book income? The purpose of the reconciliation of taxable income with book income would be to determine temporary and permanent differences. The net income on the financial books of a corporation may differ from the taxable income on its return. This is caused by differences in accounting methods between financial and taxable income. Differences are either permanent differences or temporary differences. Permanent differences are income, deduction, gain, or loss items which affect either taxable income or book......

Words: 414 - Pages: 2