Juno Corporation had ordinary taxable income of $167,000 in the current year before consideration of any...

Juno Corporation had ordinary taxable income of $167,000 in the current year before consideration of any of the following property transactions. It sold two blocks of stock held for investment. One yielded a short-term capital gain of $8,000 and the other a long-term capital loss of $14,000. In addition, Juno sold four pieces of machinery for $30,000. It purchased the machines three years ago for $80,000 and claimed $35,000 of depreciation deductions. Juno also sold a building for $400,000 that it had purchased fifteen years ago for $390,000. The depreciation deductions up to the date of sale for the building were $108,000.

Determine the amount and character of each gain or loss from the property transactions and Juno Corporation’s taxable income for the current year.

How would your answers to (a) change if Juno were a single individual with no dependents and $14,000 of itemized deductions instead of a corporation?

How would your answers to (b) change if Juno has $550,000 of ordinary taxable income?

Expert Solution

ekkarill92 answered 7 months ago

[LO 8.2 & 8.3] Juno Corporation had ordinary taxable income of $167,000 in the current year...

[LO 8.2 & 8.3] Juno Corporation had ordinary taxable income of $167,000 in the current year before consideration of any of the following property transactions. It sold two blocks of stock held for investment. One yielded a short-term capital gain of $8,000 and the other a long-term capital loss of $14,000. In addition, Juno sold four pieces of machinery for $30,000. It purchased the machines three years ago for $80,000 and claimed $35,000 of depreciation deductions. Juno also sold a...

1.In the current year, Apricot Corporation had taxable income of $120,000. Included in taxable income was...

1.In the current year, Apricot Corporation had taxable income of $120,000. Included in taxable income was a $10,000 capital gain. The $120,000 of taxable income does not include a $15,000 capital loss carryforward available from the previous year. What is Apricot Corporation's current year income tax liability before any tax credits? Group of answer choices $22.050 $21,000 $23,100 $25,200 None of these 2. An S corporation files a Form 1120S. Group of answer choices True False

In the current year, Azure Company has $350,000 of taxable income income before deducting any compensation...

In the current year, Azure Company has $350,000 of taxable income income before deducting any compensation or other payment to its sole owner, Sasha. Azure also has interest on municipal bonds of $25,000 not included above. Sasha has significant income from other sources and is in the 37% marginal tax bracket and is otherwise in the 20% long-term gain tax bracket. Based on this information, determine the income tax consequences to Azure Company and to Sasha during the year for...

Cranberry Corporation has $3,240,000 of current year taxable income. If the current year is a calendar...

Cranberry Corporation has $3,240,000 of current year taxable income. If the current year is a calendar year ending on December 31, 2017, calculate Cranberry's regular income tax liability. If the current year is a calendar year ending on December 31, 2018, calculate Cranberry’s regular income tax liability. If the current year is a fiscal year ending on April 30, 2018, calculate Cranberry's regular income tax liability. (Do not round intermediate calculations.)

Erin, a single taxpayer, has a taxable income of $168,000 in the current year before considering...

Erin, a single taxpayer, has a taxable income of $168,000 in the current year before considering the following capital gains and losses: Short-term capital gain $ 3,000 Long-term capital gain 22,000 Unrecaptured Section 1250 gain 14,000 In addition, Erin has an $8,000 long-term capital loss carryover from last year. What are the effects of these transactions on Erin’s taxable income and her income tax liability?

Bullwinkle Corporation, an S corporation, reports the following results for the current year: Ordinary income =...

Bullwinkle Corporation, an S corporation, reports the following results for the current year: Ordinary income = $40,000 Long-term capital gain= $18,000 Section 1231 gain = $8,000 Short-term capital loss= $14,000 Bullwinkle's AAA and accumulated E&P balances at the beginning of the year are $40,000 and $30,000, respectively. Bullwinkle made a $70,000 cash distribution to its sole shareholder, Maryann, on June 1 and a second $70,000 cash distribution on December 1. Maryann's basis in her Bullwinkle Corporation stock on January 1...

For the current year, LNS corporation reported the following taxable income at the end of its...

For the current year, LNS corporation reported the following taxable income at the end of its first, second, and third quarters. Quarter-End Cumulative Taxable Income First $1,550,000 Second 2,560,000 Third 3,390,000 What are LNS’s minimum first, second, third, and fourth quarter estimated tax payments determined using the annualized income method? (Enter all amounts as positive values. Leave no answer blank. Enter zero if applicable. Round "Annualization Factor" for Fourth quarter to 7 places. Round other intermediate computations and final answers...

Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of...

Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales (shown below). What is their tax liability for 2018 assuming they file a joint return? Asset Market Value Tax Basis Gain/loss Held IBM stock $50,000 $41,000 > 1 year Painting 120,000 75,000 > 1 year XOM stock 10,200 2,000 < 1 year Rental House 150,000 110,000 > 1 year Orion stock 26,000 33,000 < 1 year Martel Stock 28,000 39,000 > 1...

Marathon Inc. (a C corporation) reported $1,350,000 of taxable income in the current year. During the...

Marathon Inc. (a C corporation) reported $1,350,000 of taxable income in the current year. During the year, it distributed $135,000 as dividends to its shareholders as follows: $6,750 to Guy, a 5 percent individual shareholder. $20,250 to Little Rock Corp., a 15 percent shareholder (C corporation). $108,000 to other shareholders. How much of the dividend payment did Marathon deduct in determining its taxable income? Assuming Guy’s marginal ordinary tax rate is 37 percent, how much tax will he pay on...

Marathon Inc. (a C corporation) reported $1,750,000 of taxable income in the current year. During the...

Marathon Inc. (a C corporation) reported $1,750,000 of taxable income in the current year. During the year, it distributed $175,000 as dividends to its shareholders as follows: (Leave no answer blank. Enter zero if applicable.) $8,750 to Guy, a 5 percent individual shareholder. $26,250 to Little Rock Corp., a 15 percent shareholder (C corporation). $140,000 to other shareholders. How much of the dividend payment did Marathon deduct in determining its taxable income? Assuming Guy’s marginal ordinary tax rate is 37...

Question