C12-Chp-03-6-Worksheet-Acc Earn Credit

C12-Chp-03-6-Worksheet-Acc Earn Credit - In 2005 the...

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2cbc3b1d48dcee7ad01131fe51b942d24273ce19.xls Accumulated Earnings Credit. In each of the following scenarios, calculate the accumulated earnings credit for a local manufacturer of plastic toys that started business in 2004. Assume the corporation uses a calendar year as its tax year. Also assume that it has no current year capital gains. Case a. The manufacturer reported Accum. E&P of $50,000 at the start of 2005. The corporation needs to retain $130,000 to meet its business needs. b.
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Unformatted text preview: In 2005 the manufacturer of glass containers, reports $100,000 of current E&P, all of which is retained to meet the reasonable needs of the business. No dividends were paid in 2005. c. Assume the Corp. (Case A) provides accounting services? Case A Case B Case C Lifetime minimum Credit Accumulated E & P at start of year Current Minimum Credit Current Year E & P (Accumulated Taxable Income before…). Current E & P required to cover reasonable needs Accumulated Earnings Credit-This Year...
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  • Spring '08
  • Godfrey,H
  • Corporation, Accum, earnings credit, needs Accumulated Earnings, Accumulated Taxable Income, minimum Credit Accumulated

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