9 points: 3 points for each question with 1 point per question per year
amount of book-tax differences (BTD) will Reginald Bank have in 2000, 2001, and
2002 related to the stock options? Is it favorable or unfavorable? Is it temporary or
Repeat a. parts i.-iii. if instead YEAR 1 is 2016, YEAR 2 is 2017, and YEAR 3 is 2018.
The point breakout for part b. is just like in part a.
12 points: 4 points each
) Identify the
amount of tax that will be due from the
on the dividends received
in each of the scenarios below.
Masha (an individual taxpayer) owns 100 percent of Metro Fashion Corporation. In 2018,
she receives a $100,000 dividend from the Corporation. Masha’s other sources of income
this year are wages of $80,000 (thus, she is not considered a high income taxpayer).
Tyson Corporation owns 100 percent of Lafayette Corporation, and both companies are
in the same affiliated group. Lafayette pays Tyson $300,000 in dividends in 2018. Aside
from the dividend income, Tyson Corporation earned $400,000 in income from its
Maya Enterprises (a corporate taxpayer) owns 15 percent of Tiger Corporation. Maya
Enterprises earned $2 million from its ordinary operations during 2018. Tiger
Corporation paid out a total of $1 million in dividends to all its owners, giving each