Question
In: Accounting
n each of the following independent situations, determine the dividends received deduction for the calendar year...
n each of the following independent situations, determine the dividends received deduction for the calendar year C corporation.
Assume that Seafoam Corporation owns 40%, Oceanview owns 25% and Roughwaters owns 5% of the stock in the corporations paying the dividends.
|
Click here to view the dividend received deduction ownership percentages and corresponding deduction percentage.
|
Solutions
Expert Solution
|
Seafoam Corporation |
Oceanview Corporation |
Rough
waters Corporation |
|
| Income from operations | $240,000.00 | $480,000.00 | $700,000.00 |
| Expenses from operations | -$265,000.00 | -$485,000.00 | -$680,000.00 |
| Net Income from operations | -$25,000.00 | -$5,000.00 | $20,000.00 |
| Qualifying dividends | $100,000.00 | $100,000.00 | $100,000.00 |
| Income before the DRD (tentative income) | $75,000.00 | $95,000.00 | $120,000.00 |
| Dividends received deduction (70% × $100,000 dividends) | -$70,000.00 | -$70,000.00 | -$70,000.00 |
| Taxable income | $5,000.00 | $25,000.00 | $50,000.00 |
| The DRD is the lesser of: (1) 80% × $100,000 (dividends) = $80,000; or (2) 80% × $75,000 (tentative income) = $60000 | $60,000.00 | ||
| The DRD is the lesser of: (1) 80% × $100,000 (dividends) = $80,000; or (2) 80% × $95,000 (tentative income) = $76000. | $76,000.00 | ||
| The DRD is the lesser of: (1) 70% × $100,000 (dividends) = $70,000; or (2) 70% × $120,000 (tentative income) = $84000 | $70,000.00 | ||
| The dividends received deduction for Seafoam Corporation is | $60,000.00 | ||
| The dividends received deduction for Oceanview Corporation is | $76,000.00 | ||
| The dividends received deduction for Roughwaters Corporation is | $70,000.00 | ||
| Company owns more than 20% but less than 80 % of the company paying the dividend, the DRD amounts to 80% of the dividend received. | |||
| Company owns less than 20% of the company paying the dividend, the DRD amounts to 70% of the dividend received. | |||
| Company owns more than 80% t of the company paying the dividend, the DRD amounts to 100% of the dividend received. |
ekkarill92 answered 2 years agoRelated Solutions
In each of the following independent situations, determine the dividends received deduction. Assume that none of...
In each of the following independent situations, determine the
dividends received deduction. Assume that none of the corporate
shareholders owns 20% or more of the stock in the corporations
paying the dividends.
Almond
Corporation
Blond
Corporation
Cherry
Corporation
Income from operations
$700,000
$800,000
$900,000
Expenses from operations
(600,000)
(850,000)
(910,000)
Qualifying dividends
100,000
100,000
100,000
Click here to view the dividend received deduction table.
a.
The dividends received deduction for Almond Corporation is
$.
b.
The dividends received deduction for...
In each of the following independent situations, determine the dividends received deduction for 2018. Assume that...
In each of the following independent situations, determine the
dividends received deduction for 2018.
Assume that Oak Corporation owns 25%, Elm owns 15% and Mahogany
owns 80% of the stock in the corporations paying the dividends.
Oak
Corporation
Elm
Corporation
Mahogany
Corporation
Income from operations
$650,000
$900,000
$825,000
Expenses from operations
(525,000)
(850,000)
(800,000)
Qualifying dividends
100,000
100,000
100,000
a. The dividends received deduction for Oak Corporation is $
b. The dividends received deduction for Elm Corporation is $
c....
Determine the amount of the dividends received deduction in each of the following instances. In all...
Determine the amount of the dividends received deduction in each
of the following instances. In all cases, the net income figure
includes the full dividend.
Dividend of $10,000 from a 45% owned corporation; taxable income
before DRD of $50,000.
Dividend of $19,000 from a 15% owned corporation; taxable income
before DRD of $75,000.
Dividend of $22,000 from a 60% owned corporation; taxable income
before DRD of $11,000.
Dividend of $8,000 from a 10% owned corporation; taxable income
before DRD of...
wk 5 assing 1 Determine the amount of the dividends received deduction in each of the...
wk 5 assing 1
Determine the amount of the dividends received deduction in each
of the following instances. In all cases, the net income figure
includes the full dividend. Use Dividends deduction
table.
Dividend of $11,500 from a 45% owned corporation; taxable
income before DRD of $54,500.
Dividend of $19,900 from a 15% owned corporation; taxable
income before DRD of $78,000.
Dividend of $13,000 from a 60% owned corporation; taxable
income before DRD of $7,000.
Dividend of $3,500 from a...
Determine the amount of the standard deduction allowed for 2018 in the following independent situations. In...
Determine the amount of the standard deduction allowed for 2018
in the following independent situations. In each case, assume the
taxpayer is dependent of another taxpayer.
a. Mason, aged 18, has income as follows: $1,900 from a paper
route and $10,800 from repairing computers. $
b. Emma, aged 17, has income as follows: $950 in cash dividends
from a stock investment, $5,100 from providing dance lessons, and
$1,700 from babysitting. $
c. Samuel, aged 13, has income as follows: $100...
30.) Determine the amount of the standard deduction allowed for 2018 in the following independent situations....
30.) Determine the amount of the standard deduction allowed for
2018 in the following independent situations. In each case, assume
that the taxpayer is claimed as another persons dependent.
a.) Curtis age 18 has income as follows:$700 interest from a
certificate of deposit and $12,200 from repairing cars.
b.) Mattie, age 18 has income as follows:$600 cash dividends
from a stock investment and $4,700 from handling a paper route.
c.) Jason age 16, has income as follows:$675 interest on a...
Dividends Received Deduction Describe how the Dividends Received Deduction serves to mitigate triple taxation. Specifically comment...
Dividends Received Deduction Describe how the Dividends Received
Deduction serves to mitigate triple taxation. Specifically comment
on the criteria for claiming the DRD and the % ownership and rates
that apply. Be sure to use the updated percentages under the
TCJA
In each of the following independent situations, determine the amount of the child and dependent care...
In each of the following independent situations, determine the
amount of the child and dependent care tax credit. (Assume that
both taxpayers are employed and the year is 2017).
Brad and Bonnie are married and file a joint return, with earned
income of $40,000 and $14,000, respectively. Their combined AGI is
$52,000. They have two children, ages 10 and 12, and employ a
live-in nanny at an annual cost of $9,000.
Assume the same facts as in Part a, except...
Determine the amount of the standard deduction for each of the following taxpayers for tax year...
Determine the amount of the standard deduction for each of the
following taxpayers for tax year 2019:
Christina, who is single.
Adrian and Carol, who are filing a joint return. Their son is
blind.
Peter and Elizabeth, who are married and file separate tax
returns. Elizabeth will itemize her deductions.
Karen, who earned $1,100 working a part-time job. She can be
claimed as a dependent by her parents.
Rodolfo, who is over 65 and is single.
Bernard, who is a...
Determine the amount of the standard deduction for each of the following taxpayers for tax year...
Determine the amount of the standard deduction for each of the
following taxpayers for tax year 2017:
Christina, who is single.
Adrian and Carol, who are filing a joint return. Their son is
blind.
Peter and Elizabeth, who are married and file separate tax
returns. Elizabeth will itemize her deductions.
Karen, who earned $1,100 working a part-time job. She can be
claimed as a dependent by her parents.
Rodolfo, who is over 65 and is single.
Bernard, who is a...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- FOR JAVA (ZYBOOK) Write a method swapArrayEnds() that swaps the first and last elements of its...
- Problem 6-09 (Algorithmic) The Ace Manufacturing Company has orders for three similar products: Product Order (Units)...
- CLAIM LETTER ASSIGNMENT HEFTY TRASH BAGS While shopping at Walmart, you purchased 4 boxes of Hefty...
- The marketing team at Stacey Collins Inc. is conducting research to determine the reaction of consumers...
- if expected return is 14%. the dividend is to grow at the rate of 8% it...
- You are the IT director at Big Ten University. As part of a training program, you...
- Critical Thinking The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing...
ADVERTISEMENT