Correct answer your answer problem 4 17 dividend

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10.
Your answer:Problem 4-17Dividend Income (LO. 3)In 2013, Alva received dividends on her stocks as follows:Amur Corporation (a French corporation whose stock is traded on an established U.S. securities market)$60,000Blaze, Inc., a Delaware corporation40,000Grape, Inc., a Virginia corporation22,000If an amount is zero, enter "0".a. Alva purchased the Grape stock three years ago, and she purchased the Amur stock two years ago. She purchased the Blaze stock 18 days before it went ex-dividend and sold it 20 days later at a $5,000 loss. Alva reported no other capital gains and losses for the year. She is in the 35% marginal tax bracket.The amount of her tax on qualifyingdividends is $12300 .The amount of her tax on nonqualifyingdividends is $14000 .The total tax on all her dividend income is $26300 .b. Alva's daughter, Veda, who is age 25 and who is not Alva's dependent, reported taxable income of $10,000, which included $1,000 of dividends on Grape stock. Veda purchased the stock two years ago.Daughter's tax liability on the dividends is $0 .11.Correct answer:YesYesYesNoYesYour answer:Problem 4-19Issue Recognition (LO. 5)Brad is the president of the Yellow Corporation. He and other members of his family control the corporation. Brad has a temporary need for $50,000, and the corporation has excess cash. He could borrow the money from a bank at 9%, and Yellow is earning 6% on its temporary investments. Yellow has made loans to other employees on several occasions. Therefore, Brad is considering borrowing $50,000 from the corporation. He will repay the loan principal in two years plus interest at 5%.Classify the relevant tax issues for Brad and the Yellow Corporation by selecting either "Yes" or "No" from the dropdown list.a. Is the corporation required to impute interest income on the loan to Brad?
b. Is Brad required to recognize income from the loan proceeds or with respect to the favorable interest rate?
c. Is the loan made to Brad in his capacity as a shareholder or as an employee?
d. Has the corporation made a loan to Brad within the last 24 months?
e. Is the loan subject to the original issue discount rules?Yes eBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookeBookPage 6 of 11Chapter 4 Homework11/4/2013...
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