C11-Chp-13-1B-Comparing Entities

C11-Chp-13-1B-Comparing Entities - Problem

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem ae0ffafbfcbb05b1317f04a3d072ce622e227b3c.xls Page 1 od 2 On 1-1-2011, Jan invested $200,000 in Concord Corp. and $200,000 in Shelby Corp. Jan received all stock of both corps. Shelby Corp immediately elected S Status. Summary of 2011 Transactions Concord Shelby Jan's C Corp. S Corp. Return Revenue $100,000 $100,000 Compensation paid to Jan (40,000) (40,000) Sec. 61 Other Expenses (20,000) (20,000) Net Income before income tax-Concord $40,000 Sec. 63, 301 Federal Income Tax paid by Concord Sec. 11 Net Income before income tax - Shelby $40,000 Sec. 1366(a)(1) Federal Income Tax paid by shelby Sec. 1363(a) Dividends paid to Jan by Concord $10,000 Sec. 301 Dividends paid to Jan by Shelby $10,000 Corp. income tax is paid for 2011? Sec. 11 Total income reported in 2011 for Jan? 1-1-12, Jan sold all Concord Stock for $300,000 1-1-12, Jan sold all Shelby Stock for $300,000 Beginning basis in stock (1-1-2011) $200,000 $200,000 Sec. 1012 Add: Sec. 1367(a)(1) Subtract: Sec. 1367(a)(2) Ending basis in stock (1-1-2012) Sec. Jan's total gain on these stock sales? Sec. 1001 Six unrelated individuals each own 50% of one of these businesses. Each business pays health insurance premiums for owners who all work in the businesses. Summary of 2011 Corporate Transactions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

C11-Chp-13-1B-Comparing Entities - Problem

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online