Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution...
Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack? Group of answer choices
Federal income tax
Homework Answers
Answer: $12,000
Ordinary income during the year is the return of capital. It is so because he is the only shareholder in that company; therefore, there is no share of distribution of company’s income among the other shareholders.
The other amounts are not relevant here:
$20,000: this only a distribution; may be for accumulated dividend.
$7,000: this is the basis, means the capital investment at the beginning of year.
Add Answer to:
Jack Slater is the sole shareholder of an S corporation. During
2018, Jack received a distribution...
(CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received...
(CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack? $19,000 $7,000 $12,000 $20,000
Question 2 10 pts During 2017, Sophia Roosevelt, the sole shareholder of a calendar year 5...
Question 2 10 pts During 2017, Sophia Roosevelt, the sole shareholder of a calendar year 5 corporation, received a distribution of $50,000. On December 31, 2016, her stock basis was $33,000. The corporation earned $16,000 ordinary income during the year. It has no accumulated E&P Which statement is correct? None of the above. Roosevelt's ordinary income is $49.000 Roosevelt's return of capital is $16,000. Roosevelt's stock basis will be $17.000. Roosevelt recognizes a $1.000 LTCG.
15. The sole shareholder of an S Corp is active in the business and has a...
15. The sole shareholder of an S Corp is active in the business and has a basis of $5,000 in the stock. The shareholder also has loaned $3,000 to the corporation. The shareholder's information return from the S Corp indicated the shareholder's portion of the loss from ordinary business is $7,000. a) How much if anything can the shareholder deduct on his individual tax return? b) What is the shareholder's basis in the shares at the beginning of the next...
Mavis is the sole shareholder of Randiff, Inc., an S corporation with a December 31 year-end. The...
Mavis is the sole shareholder of Randiff, Inc., an S corporation with a December 31 year-end. The basis of her stock at January 1, 20X1, is $20,000. She loaned the corporation $10,000 on January 1, 20X1. The corporation had a taxable loss of $24,000 in 20X1 and taxable income of $15,000 in 20X2. What is the stock basis at December 31, 20X2? A. $6,000 B. $11,000 C. $12,000 D. $24,000
Rajib is the sole shareholder of Cardinal Corporation, a calendar vear S corporation. In the current...
Rajib is the sole shareholder of Cardinal Corporation, a calendar vear S corporation. In the current year, Cardinal generated a net profit of $350,000 ($520,000 gross income - $170,000 operating expenses) and distributed s80,000 to Rajib. Rajib must report the Cardinal Corporation profit of $350.000 on his Federal income tax return. True Faise
Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for...
Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for all of the stock of Corporation. The real estate was a capital asset in Evan’s hands and will also be a capital asset when held by the corporation. Evan’s basis in the real estate was $10,000 and the value of the real estate was $8,000 on the date of the transfer. If Evan received $2,000 in cash and 100 shares of stock from the...
George, a sole shareholder, has a $17,000 stock basis and $16,000 basis in a loan that...
George, a sole shareholder, has a $17,000 stock basis and $16,000 basis in a loan that he made to George and Sons a calendar year S Corporation with no AEP. At the beginning of the tax year, the corporation’s AAA and OAA balances are $0. Subchapter S ordinary income for the year is $18,200 during which George and Sons, received $8,000 of tax-exempt interest income. Cash of $17,300 is distributed to George on November 15. Please compute George’s Stock basis,...
Jerry, a U.S. Citizen, is a sole shareholder of S corporation, named "Jerry Machine Tool Company". He has $5,000 basis i...
Jerry, a U.S. Citizen, is a sole shareholder of S corporation, named "Jerry Machine Tool Company". He has $5,000 basis in stock. Jerry also loaned money to S Corporation and has basis of $3,000. Assume no AEP, calendar year and beginning balance of AAA and OAA accounts are zero. The Corp. made $10,000 in the ordinary income which was reported on Jerry’s K-1. Corp. also received a tax- free interest income of $4,000 which was also reported on K-1. Jerry...
ASSUME ALL CORPORATIONS ARE C CORPORATIONS Corporation X-a C Corporation-distributed the following to its sole shareholder-John-during...
ASSUME ALL CORPORATIONS ARE C CORPORATIONS Corporation X-a C Corporation-distributed the following to its sole shareholder-John-during the year: Inventory-cost/basis of $5,000 with a fair market value of $9,000. The following facts are provided: Corp X has accumulated E and P of $ 12, 000 and current E and P of $2,000 - without regard to this distribution. Corp X's tax rate is 21 percent. John has a basis in the corporate stock of $23,000. 1. What are the tax effects...
ASSUME ALL CORPORATIONS ARE C CORPORATIONS Corporation X-a C Corporation-distributed the following to its sole shareholder-John-during...
ASSUME ALL CORPORATIONS ARE C CORPORATIONS Corporation X-a C Corporation-distributed the following to its sole shareholder-John-during the year: Inventory-cost/basis of $5,000 with a fair market value of $9,000. The following facts are provided: Corp X has accumulated E and P of $ 12, 000 and current E and P of $2,000 - without regard to this distribution. Corp X's tax rate is 21 percent. John has a basis in the corporate stock of $23,000. 1. What are the tax effects...
(CO 10) Jack Slater is the sole shareholder of an S corporation. During 2018, Jack received a distribution of $20,000. His basis in the stock at December 31, 2017 was $7,000. The S corporation earned ordinary income of $12,000 in 2018. The corporation had no accumulated E & P. What should be the amount of return of capital for Jack? $19,000 $7,000 $12,000 $20,000
Question 2 10 pts During 2017, Sophia Roosevelt, the sole shareholder of a calendar year 5 corporation, received a distribution of $50,000. On December 31, 2016, her stock basis was $33,000. The corporation earned $16,000 ordinary income during the year. It has no accumulated E&P Which statement is correct? None of the above. Roosevelt's ordinary income is $49.000 Roosevelt's return of capital is $16,000. Roosevelt's stock basis will be $17.000. Roosevelt recognizes a $1.000 LTCG.
15. The sole shareholder of an S Corp is active in the business and has a basis of $5,000 in the stock. The shareholder also has loaned $3,000 to the corporation. The shareholder's information return from the S Corp indicated the shareholder's portion of the loss from ordinary business is $7,000. a) How much if anything can the shareholder deduct on his individual tax return? b) What is the shareholder's basis in the shares at the beginning of the next...
Rajib is the sole shareholder of Cardinal Corporation, a calendar vear S corporation. In the current year, Cardinal generated a net profit of $350,000 ($520,000 gross income - $170,000 operating expenses) and distributed s80,000 to Rajib. Rajib must report the Cardinal Corporation profit of $350.000 on his Federal income tax return. True Faise
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago