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T12S-Chp-02-1A-Compare-Entities-Problem

T12S-Chp-02-1A-Compare-Entities-Problem - Page 1 of 2...

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6626082050c365e687c956f5c401f866129f804e.xls Page 1 of 2 Comparing Rules for C Corporation, S Corporation and Partnership On 1-1-2010, Sue invested $80,000 for 100% of stock of Sue Corp. (C corporation). On 1-1-2010, Sue invested $50,000 for 50% of stock of SueCorpS. (S corporation). On 1-1-2010, Sue invested $60,000 for 50% of capital of Sue partnership. For each investment, she received the ownership stake described above. She works in all three businesses, which were all organized on 1-1-2010. She only receives pay from the corporations. FILL IN SHADED SPACES BELOW. Results for current year Sue Corp. SueCorpS. Sue Ptshp. Sue-1040 Revenue $100,000 $100,000 $100,000 Compensation to Sue 40,000 40,000 61, 1.61-2 Other Expenses 10,000 30,000 30,000 Net Income and taxable income 50,000 Net Income and taxable income 30,000 1366 Net Income and taxable income 70,000 702 Total cash distributions to shareholder 6,000 301, 317(a), 316 Total cash distributions to shareholders $4,000 1368(b) Total cash distribution to Partners $10,000 731 Income tax paid by C Corportion Income tax paid by S Corporation 0 Income tax paid by partnership. 0 Gross income is reported by Sue from these three entities?
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