Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (25 points) tiger corp is a calendar year taxpayer

(25 points) Tiger Corp is a calendar year taxpayer that elected S status in its...

80.2K

Verified Solution

Question

Accounting

(25 points) Tiger Corp is a calendar year taxpayer that elected S status in its second year of operations. Tiger is owned by Leath (600 shares with beginning AB = $12,000) and Harbert (400 shares with beginning AB = $8000). The income statement for Tiger Corp is presented below. The corporations beginning AAA balance was -$30,000, OAA was $1,000, and Accumulated E&P from prior years as a C corp was $1,000. Sales Revenue $105,000 Death benefit on key officer life insurance $5,000 Cost of goods sold ($45,000) Salary expense to owners ($20,000) Employee wages ($5,000) Net STCL stock sale ($2,000) Depreciation expense ($10,000) Rental Real Estate Loss ($1,000) Entertainment ($2,000) Net Income $25,000 Tax depreciation is $15,000 of which $5,000 is Sec. 179 depreciation. Tiger Corp also made a $10,000 distribution.

A. Provide a book-tax reconciliation above and distinguish between ordinary business income (loss) and separately stated items (taxable and nontaxable). B. Determine the ending balances in all entity level accounts after the distribution. C. Determine Harberts ending adjusted basis. D. What is the tax treatment of the distribution to Harbert?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Please explain the rationale behind circadian timing of chemotherapy for cancer treatment

Biology
Q

Why does our society want to regulate drug use?

Psychology
Q

Using MATLAB, plot the following curves for the crank angle range of 0-360: a. For an engine...

Mechanical Engineering
Q

Craig's Car Wash Inc. is considering a project that has the following cash flow and cost...

Finance
Q

1 How Science Works Question 5 Which of the following is the best reason for...

Biology
Q

2 Leslie works for Blanck Corporation His annual salary is 57 285 50 a What...

Basic Math
Q

Vandelay Industries is considering the purchase of a new machine for the production of latex....

Accounting
Q

A company does not need to journalize entries in order to construct the trial balance....

Accounting
Q

Value-Stream Average Costing, DBC, ABC Costs as Benchmarks Model B is three hours. The resource...

Accounting
Q

The stockholders' equity section of Pina Colada Corp.'s balance sheet at December 31 is presented...

Accounting
Q

Amortization. Beth has just borrowed $5,200 on a four-year loan at 5% simple interest. Complete...

Finance
Q

Question 1. Suppose that you invest P dollars at the beginning of every week. However,...

Finance