You are given the following facts about a solely owned S corporation. What is the shareholder's ending stock basis?
Increase in AAA $31,000
Increase in OAA 6,300
Payroll tax penalty 2,140
Beginning stock basis 39,800
Stock purchases 22,000
Tax-exempt life insurance proceeds 4,800
Life insurance premiums paid (nondeductible) 2,700
a. $61,800
b. $68,100
c. $99,100
d. $100,100
c
RATIONALE: $39,800 + $31,000 + $6,300 + $22,000 = $99,100.
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Perch Corporation has made paint and paint brushes for the past ten years. Perch Corporation is owned equally by Arnold, an individual, and Acorn Corporation. Perch Corporation has $100,000 of accumulated and current E&P. Both Arnold and Acorn Corporation have a basis in their stock of $10,000. Perch Corporation discontinues the paint brush operation and distributes assets worth $10,000 each to Arnold and Acorn Corporation in redemption of 20% of their stock. Due to the distribution, Arnold and Acorn Corporation must report:
A.
| Arnold | Acorn Corporation |
| $10,000 dividend | $8,000 capital gain |
B.
| Arnold | Acorn Corporation |
| $8,000 capital gain | $8,000 capital gain |
C.
| Arnold | Acorn Corporation |
| $8,000 capital gain | $10,000 dividend |
D.
| Arnold | Acorn Corporation |
| $10,000 dividend | $10,000 dividend |
The process of generating leads from databases entails first developing a profile of key descriptors of targeted firms or managers, and then using a variety of statistical programs to search databases for names that match the profile
Indicate whether the statement is true or false
Refer to the following selected financial information from Gomez Electronics. Compute the company's profit margin for Year 2. Year 2Year 1Net sales$478,500 $426,250 Cost of goods sold 276,300 250,120 Interest expense 9,700 10,700 Net income before tax 67,250 52,680 Net income after tax 46,050 39,900 Total assets 317,100 288,000 Total liabilities 181,400 167,300 Total equity 135,700 120,700
A. 16.7%. B. 14.1%. C. 11.7%. D. 9.6%. E. 33.9%.
The terms of a partnership agreement provide that one of the partners is to receive a salary allowance of $30,000, plus a bonus of 20 percent of income after deduction of the bonus and the salary allowance. If income is $150,000, the bonus should be:
A. $20,000 B. $30,000 C. $18,000 D. $24,000