C11-Chp-13-1C-CCorp-and-SCorp-Operation-and-Distributions

C11-Chp-13-1C-CCorp-and-SCorp-Operation-and-Distributions -...

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1. Problem 75e9aed38a60f2dc6eca713aea8d6362bbc03c91.xls Page 1 of 2 Husband died. Widow received life insurance proceeds of $400,000. Widow invested the money January 1, 2010 December 31, 2010 C Corp. S Corp. C Corp. S Corp. Cash $200,000 $200,000 Cash $140,000 $150,000 Other Assets Other Assets $110,000 $110,000 $200,000 $200,000 $250,000 $260,000 Common Stock $200,000 $200,000 C. Stock ($10 par) $200,000 $200,000 Retained Earnings Retained Earnings $50,000 $60,000 $200,000 $200,000 $250,000 $260,000 Revenue-2010 $400,000 $400,000 Salary to Owner ($30,000) ($30,000) Other Expenses ($310,000) ($310,000) Net income before tax $60,000 $60,000 Income Taxes Net income Code 1 Amount of income Widow reported when she received insurance proceeds? 101 Amount of income Central Corp. reported when Widow invested cash for stock? 118, 1032 2 1011, 1012 What is Owner's gain if she sells all Central stock for $270,000 on 12-31-2010? 1001 3 1366, 1367 What is Owner's gain if she sells all South stock for $270,000 on 12-31-2010? 1001 Ignore No. 2 and 3 when answering questions below. 4 $60,000 How much federal income tax was paid by Central Corporation for 2010? 11(b)(1) How much income from Central Corp. is reported by Owner for 2010? Salary, etc. 61 5 Owner also receives cash dividend of $40,000 from Central on 12-31-2010. $40,000 How much "total" income will Owner report from Central Corporation in 2010? 61, 301(c )(1) 6 Change the amount in No. 5 above to $64,000 (not $40,000). Dividend $64,000 How much "total" income will Owner report from Central Corp. in 2010? 301(c )
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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C11-Chp-13-1C-CCorp-and-SCorp-Operation-and-Distributions -...

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