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Unformatted text preview: ACCT 730 WEEK #1 Chapter 2: 33,35, 43 Chapter 3: 29,34, 42, 43 and 46 2-#33: a. Since S corporations do not pay Federal Income Tax and are similar to partnerships in that net profits or loss Andrew will report this information on his individual tax return as followed: Opearting Income 200,000 .00 Operating Expenses (120,000. 00) Gross Profit 80,000 .00 Capital loss (3,000. 00) Taxable income 77,000 .00 Standard deduction (5,700. 00) Personal Exemption (3,650. 00) AGI 67,650 .00 => Andrew will pay tax on $67,650 and carry the remaining capital loss of $7,000 to future years until absorbe b. Corporate taxpayers are not permitted to claim any net capital losses as a deduction against ordinary income. these capital losses with, Emu Company may carry back $10,000 capital losses to 3 preceding years and forwar In addition, C corporation pay separate Federal income tax and is a separate entity. Since Andrew did not recei not have to report anything in his individual tax return....
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This note was uploaded on 04/07/2011 for the course ACCT 640 taught by Professor N/a during the Spring '11 term at Davenport.
- Spring '11