Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tracy and jerome, equal shareholders in macaw corp

Tracy and Jerome, equal shareholders in Macaw Corporation, receive $600,000 each in...

70.2K

Verified Solution

Question

Accounting

Tracy and Jerome, equal shareholders in Macaw Corporation, receive $600,000 each in distributions on December 31 of the current year. Macaws current-year taxable income is $1,000,000 and it has no accumulated E & P. Last year, Macaw sold an appreciated asset for $1,200,000 (basis of $400,000). Payment for one-half of the sale of the asset was made this year. How much of Tracys distribution will be taxed as a dividend?

a.

$0

b.

$300,000

c.

$500,000

d.

$600,000

Jenna owns and manages her single-member LLC, which provides a wide variety of financial services to her clients. She is married and will file a joint tax return with her spouse, Paul. Her LLC reports $300,000 of net income, W-2 wages of $120,000, and assets with an unadjusted basis of $75,000. Their taxable income before the QBI deduction is $285.000 (this is also their modified taxable income). What is their QBI deduction for 2021?

a.

$-0-.

b.

$57,000.

c.

$60,000.

d.

$70,000.

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

How and why might the importance of budget affect GAAP forexternal (general purpose) reports?How...

Accounting
Q

Prepaid pension benefits is not considered an operating asset. Pension and post retirement benefits is considered an...

Accounting
Q

On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive...

Accounting
Q

Twenty students are working at a car wash to raise money for the homeless shelter...

Basic Math
Q

A college job placement center has requests from five students for employment interviews Three of...

Statistics
Q

Find the indefinite integral 6u 12u du

Calculus
Q

Let g(v) = -6v + 18v +7 - 16vDetermine the critical values of g. If...

Calculus
Q

Solve the equation for g y gx a

Algebra
Q

Working capital and current ratio urrent assets and current liabilities for Sandstone Company follow: 2049...

Accounting
Q

Problem 2-31 Spreadsheet Problem: Income Statement (LG2-1) Consider a firm with an EBITDA...

Accounting
Q

2. As a student, do you have any proposed cost classification/s that will better fit...

Accounting
Q

Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued $22,000,000...

Accounting