7090940-Solutions - CHAPTER 21 S CORPORATIONS SOLUTIONS TO...

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CHAPTER 21 S CORPORATIONS SOLUTIONS TO PROBLEM MATERIALS Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 1 Restrictions on S corporations New 2 Use of a qualified Subchapter S subsidiary Unchanged 2 3 S corporations and like-kind exchanges Unchanged 3 4 Nonresident alien Unchanged 4 5 Reelection after termination Unchanged 5 6 Passive investment income New 7 Schedule M Unchanged 7 8 AAA bypass election Unchanged 8 9 AAA versus stock basis Unchanged 9 10 Stock basis Unchanged 11 11 Built-in gains tax New 12 C corporation NOL and S election Unchanged 12 13 Subchapter S taxable income Unchanged 13 14 Nonseparately computed income Unchanged 14 15 Nonseparately computed income Unchanged 15 16 Income allocation Unchanged 16 17 Distributions New 18 Distributions Unchanged 18 19 Distributions Unchanged 19 20 Shareholder basis and liquidation Unchanged 20 21 Shareholder basis: Losses and distributions Unchanged 21 22 AAA: losses and distributions Unchanged 22 23 Stock basis/AAA Unchanged 23 24 Distribution Unchanged 24 25 AEP bypass election Unchanged 25 26 Alternative minimum tax New 27 Loss allocation New 21-1
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21-2 2004 Comprehensive Volume/Solutions Manual Status: Q/P Question/ Present in Prior Problem Topic Edition Edition 28 Loss allocation New 29 AAA/stock basis/AEP Unchanged 29 30 Built-in gains tax Unchanged 30 31 Built-in gains tax Unchanged 31 32 Passive investment income tax Unchanged 32 33 Stock basis Unchanged 33 34 Built-in gains tax Unchanged 34 35 Family S corporation and reallocation of operating income Unchanged 35 36 Liquidation of S corporation Unchanged 36 37 Per-books election Unchanged 37
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21-3 CHECK FIGURES 13.a. 13.b. 14. 15.a. 15.b. 16.a. 16.b. 17. 18. 19. 20.a. 20.b. 20.c. 21. 22. 23.a. 23.b. $75,000. $25,000. $68,000. Sammy’s share, $26,000. $6,000. Thomas $123,287.85; Estate $376,712.87; Ralph $500,000. Ralph $500,000; Thomas $200,000; Estate $300,000. $11,000 ordinary income; $15,000 return of capital; $1,000 capital gain. Tobias $90,000 ordinary income (salary); Goblins $90,000 deduction. Tobias $90,000 ordinary income (dividend); Goblins no deduction. $20,000. Adam $150,000; Bonnie $70,000. Adam ($40,000); Bonnie $40,000. Bip’s ending stock basis $0. Ending AAA ($30,000); ending AEP $55,000. $41,000. $66,000. 24. 25. 27. 28. 29. 30.a. 30.b. 30.c. 31. 32. 33. 34. 37. Each shareholder has $200,000 dividend income, $250,000 ending basis. Each shareholder has $300,000 dividend income, $350,000 ending basis. $12,000. $19,200 operating loss; $4,800 capital loss. AAA, ($7,000); stock basis, $1,000; AEP, $1,000. $19,600 liability. $29,750. $17,500. $19,950 tax liability. $10,500.
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This note was uploaded on 03/08/2010 for the course ACCT 3500 taught by Professor Smith during the Spring '10 term at Kwantlen Polytechnic University.

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7090940-Solutions - CHAPTER 21 S CORPORATIONS SOLUTIONS TO...

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