Jaeschbacker- AC430 Assignment-Unit 3.doc

Jaeschbacker- AC430 Assignment-Unit 3.doc - Joanna...

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Unformatted text preview: Joanna Aeschbacker AC 430 Assignment Unit 3 C:3-1. Depending on whether High chooses a fiscal tax year or a calendar tax year, Highs tax year must match its annual accounting period. If High chooses a fiscal year from when they first incorporated, High would be filing from May 1 st through April 30 th . If High chooses the calendar year, it would file a short year tax return for the first year from May 1 st through December 31 st and all subsequent years the return would be filed Jan 31 st through Dec 31 st . (pg 3-2) C:3-11. Corporations are allowed a dividends-received deduction based on the amount of ownership the dividend receiving corporation holds in dividend distributing corporation. This is allowed because the corporation receiving dividends has to include the dividends received in their gross income calculation. If the deduction were not allowed, the dividends could be potentially taxed three times: Once by the initial corporation, once by the corporation receiving the dividend, and once by the final individual recipient. To avoid this, the dividends received deduction was formed allowing corporation receiving dividends to deduct either 70% or 80% of the dividends received, based on stock ownership. If the deduct either 70% or 80% of the dividends received, based on stock ownership....
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Jaeschbacker- AC430 Assignment-Unit 3.doc - Joanna...

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