CHAPTER3 tax problem-4302 - CHAPTER 3 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1 Denee Corporation a calendar year manufacturing company has

CHAPTER3 tax problem-4302 - CHAPTER 3 SUPPLEMENTAL HANDOUT...

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CHAPTER 3 SUPPLEMENTAL HANDOUT C CORPORATION TAXATION PROBLEMS 1.Denee Corporation, a calendar year manufacturing company, has Accumulated Earnings And Profits(AE&P) of $220,000 as of December 31, 2015. Denee Corporation has Taxable Income of$130,000 for the year of 2016 and has a Dividends Paid Deduction of $40,000 (paid during the lastsix (6) months of the year of 2016). Denee Corporation determines that its Reasonable BusinessNeeds for the year of 2016 is $100,000. Denee Corporation is entitled to a $7,000 deduction for NetLong-Term Capital Gain (Net Of Capital Losses and Net Of Tax) for the year of 2016.(a) What is the Accumulated Earnings Credit for Denee Corporation for the year of 2016?2.Anita Corporation, a calendar year manufacturing company, retained $70,000 for its ReasonableBusiness Needs for the year of 2016. Anita Corporation had for the year of 2016 a Long-TermCapital Gain of $20,000 and a Short-Term Capital Loss of $15,000 with a resulting Capital Gain Taxof $1,250. The Accumulated Earnings And Profits (AE&P) of Anita Corporation at the end of theyear of 2015 was $260,000. On January 25, 2016, Anita Corporation paid a Taxable Dividend of$90,000.(a) What is the Accumulated Earnings Credit for Anita Corporation for the year of 2016?
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