What is the passive investment income tax on an S corporation that has gross

What is the passive investment income tax on an s

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57. What is the passive investment income tax on an S corporation that has gross receipts of $200,000, passive investment income of $80,000, and expenses of $10,000 directly connected to the production of the passive income? 58. Ziad Corporation, an S corporation, distributes land held as an investment to its sole shareholder. The land was purchased for $17,000 and has a fair market value of $28,000 on the date of distribution. What are the tax implications of this distribution? 59. Donald owns 39 percent of the shares of an S corporation. The corporation pays $450 for a group-term life insurance policy. How is this payment reported by the S corporation and Donald? 60. Delta Corporation, an S corporation, has $30,000 of taxable income before charitable contributions. The corporation has $5,000 in charitable contributions for the year. What is Delta’s charitable contribution deduction? 61. An S corporation is on the accrual basis and the sole shareholder is on the cash basis. For the pay period ending December 27, 2013, the shareholder earns a salary of $400. He is paid on January 3, 2014. What is the amount allowable as a deduction for 2013? 62. S corporation has $90,000 of taxable income for the year and three equal shareholders. One of the shareholders dies on March 14. His estate continues to hold the stock for the remainder of the year. Determine the amounts includible on the last return of the decedent-shareholder and on the estate’s income tax return. 63. A shareholder purchases 30 percent of the stock of an S corporation two-thirds of the way through the year for $20,000. The S corporation incurs an operating loss of $300,000 for the year. What is the amount that the shareholder may deduct on his personal income tax return, assuming the at-risk and passive activity rules do not apply? 64. Germaine, the sole shareholder in Nomad Corporation, has a basis in his stock of $18,000 at the beginning of the year. The corporation has taxable income of $9,000 for the year. In addition, the corporation has a short-term capital loss of $1,200 and tax-exempt income of $800. What is Germaine’s basis in his stock at the end of the year? 65. Malcolm is the sole shareholder in an S corporation. At the beginning of the year, his basis in this stock is $7,000. For the year, the corporation incurs a $4,500 loss. By the end of the year, the corporation’s stock is worthless. What is the amount of loss from the worthless stock that Malcolm is allowed to take on his return? 66. Alpha Corporation, a calendar-year S corporation, has no accumulated earnings and profits at the end of the year. An individual shareholder receives a cash distribution of $10,000 during the year. How will this distribution be recognized, assuming the shareholder has an $8,200 basis in his stock? 67. Delta Corporation, a calendar-year S corporation, has an accumulated adjustments account of $8,000. It also has accumulated earnings and profits from pre-1983 years of $12,000. The sole shareholder receives a $27,000 cash distribution from the corporation. How will this distribution be treated if the shareholder’s basis in the stock is $12,200?
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