C12-Chp-05-1D-Dividends-EXCEL-Prb-and-Sol-2012

C12-Chp-05-1D-Dividends-EXCEL-Prb-and-Sol-2012 -...

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Unformatted text preview: Pg-1-Distribution-Part-1b5b11762660c31f50c2d0ab7d49cb827ce1f3983.xlsPage 1 of 5CitationPage NoNote: all corps are C corps unless other information is given.Amounts in thousandsAfter tax income = E&P for the yearCase 1Case 2Case 3Case 41 Bob's investment to start Co. 01/01/11$500 $500 $500 $500 Net Income2011$600 $600 $600 $600 Federal income tax2011($200)($200)($200)($200)Net income after tax2011$400 $400 $400 $400 301Cash distribution12/31/11$0 $200 $500 $1,000 316Div. Income for Shareholder12/31/11301 c2Capital gain for Shareholder12/31/11301 c3Stock basis of Shareholder12/31/11E & P - end of year12/31/111363, 1366, 1367Stock basis of SH (if S Corp)? 12/31/11Assume in Case 2 above that dividend was paid on April 1, 2011?Div. Income for ShareholderSameAfter tax income = E&P for the yearCase 5Case 6Case 7Case 82 Bob's investment to start Co. 01/01/11$500 $500 $500 $500 Net Income (loss) after tax2011$600 ($600)$600 ($100)Net Income (loss) after tax2012$400 $400 ($400)($100)Cash distribution12/31/12$1,000 $1,000 $1,000 $1,000 Div. Income for Shareholder12/31/12Capital gain for Shareholder12/31/12Stock basis of Shareholder12/31/12Assume dividend is paid on 09/30/12Div. Income for ShareholderCapital gain for ShareholderPg-2-Distribution-Part-2b5b11762660c31f50c2d0ab7d49cb827ce1f3983.xlsPage 2 of 5CitationPage NoNote: all corporations are C corporations unless other information is given.3 Charlotte Corp [No State Income Tax]Amounts in thousandsFill in missing amounts (underlined)GAAPTaxE & PAMTSales $200 $200 $200 1.312-6 bMunicipal bond interest 12 Dividends received (10% owned)10 Total Revenue222 Compensation 80 80 80 Meals and entertainment (Gross)20 10 20 312 kDepreciation expense - Straight-Line 53 53 53 Other DeductionTotal Expenses (Deduct)153 Net Income before taxes $69 Taxable incomeE&P subtotalFederal income taxAfter tax incomeEarnings and profits...
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C12-Chp-05-1D-Dividends-EXCEL-Prb-and-Sol-2012 -...

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