Week+06+Team+Assignment

Week+06+Team+Assignment - Problems 50 & 51 (Ch. 22) Use...

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Use the following information to complete problems 50 and 51: 50. (LO3) Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Year 1 Jack Jill Ordinary Income $10,625 $31,875 Interest Income $500 $1,500 Ordinary Dividends $125 $375 Year 2 Ordinary Income $32,750 $98,250 Interest Income $625 $1,875 Ordinary Dividends $250 $750 b. Complete UpAHill’s Form 1120S, Schedule K, for year 1. Please see Attachment c. Complete Jill’s 1120S, Schedule K-1, for year 1. Please see Attachment
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51. (LO3, LO4) Assume Jack and Jill, 25 and 75 percent shareholders in UpAHill corporation, have tax bases in their shares at the beginning of year 1 of $24,000 and $56,000, respectively. Also assume no distributions were made. Given the income statement above, what are their tax bases in their shares at the end of year 1? Jack
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Week+06+Team+Assignment - Problems 50 & 51 (Ch. 22) Use...

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