Question

In: Accounting

On December 31, 2018, Mrs. Laura Andrade gives shares with an adjusted cost base of $23,000...

On December 31, 2018, Mrs. Laura Andrade gives shares with an adjusted cost base of $23,000 and a fair market value of $37,000 to her 12 year old daughter, Emma. On February 24, 2019, the shares pay eligible dividends of $2,500 ($3,450 taxable amount) and, on August 31, 2019, Emma sells the shares for $42,000. What are the tax consequences for Mrs. Andrade and Emma in each of the years 2018 and 2019?

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

On December 31, 2017, Brisbane Company had 100,000 shares of common stock outstanding and 23,000 shares...
On December 31, 2017, Brisbane Company had 100,000 shares of common stock outstanding and 23,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Brisbane purchased 17,000 shares of common stock on the open market as treasury stock paying $33 per share. Brisbane sold 5,300 treasury shares on September 30, 2018, for $38 per share. Net income for 2018 was $173,905. Also outstanding during the year were fully vested incentive stock options giving key personnel the...
As of December 31, 2018, Warner Corporation reported the following:    Dividends payable $ 23,000 Treasury...
As of December 31, 2018, Warner Corporation reported the following:    Dividends payable $ 23,000 Treasury stock 630,000 Paid-in capital—share repurchase 23,000 Other paid-in capital accounts 4,300,000 Retained earnings 3,300,000    During 2019, half of the treasury stock was resold for $246,000; net income was $630,000; cash dividends declared were $1,530,000; and stock dividends declared were $530,000.    What would shareholders' equity be as of December 31, 2019?
The adjusted trial balance for Tybalt Construction as of December 31, 2018, follows. TYBALT CONSTRUCTION Adjusted...
The adjusted trial balance for Tybalt Construction as of December 31, 2018, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2018 No. Account Title Debit Credit 101 Cash $ 7,500 104 Short-term investments 22,000 126 Supplies 9,200 128 Prepaid insurance 8,600 167 Equipment 55,000 168 Accumulated depreciation—Equipment $ 27,500 173 Building 162,000 174 Accumulated depreciation—Building 54,000 183 Land 64,470 201 Accounts payable 16,000 203 Interest payable 2,000 208 Rent payable 3,200 210 Wages payable 2,700 213 Property taxes payable 900...
The adjusted trial balance for Tybalt Construction as of December 31, 2018, follows. TYBALT CONSTRUCTION Adjusted...
The adjusted trial balance for Tybalt Construction as of December 31, 2018, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2018 No. Account Title Debit Credit 101 Cash $ 7,500 104 Short-term investments 22,000 126 Supplies 9,200 128 Prepaid insurance 8,600 167 Equipment 55,000 168 Accumulated depreciation—Equipment $ 27,500 173 Building 162,000 174 Accumulated depreciation—Building 54,000 183 Land 64,470 201 Accounts payable 16,000 203 Interest payable 2,000 208 Rent payable 3,200 210 Wages payable 2,700 213 Property taxes payable 900...
Prepare Balance Sheet The following is the adjusted trial balance at December 31, 2018 for the...
Prepare Balance Sheet The following is the adjusted trial balance at December 31, 2018 for the Farmer Enterprises. Account Title Debits Credits   Cash 105,000   Investments 274,000   Accounts receivable 161,000   Inventories 234,000   Loans to employees 59,000   Prepaid expenses (for 2019) 35,000 Rent expense 84,000   Land 299,000   Building 1,740,000   Machinery and equipment 656,000 Trademark 171,000 Copyright 59,000 Bad debt expense 6,200 Depreciation expense 98,750 Dividends 40,000   Note receivable 345,000   Interest receivable 31,000 Cost of goods sold 242,000   Accumulated depreciation—building 639,000   Accumulated depreciation—equipment...
Vanguard Services had the following adjusted trial balance at December 31, 2018. VANGUARD SERVICES Adjusted Trial...
Vanguard Services had the following adjusted trial balance at December 31, 2018. VANGUARD SERVICES Adjusted Trial Balance For the year ended December 31, 2018 Account titles Debits Credits Cash $ 10,800 Interest Expense 900 Accounts Receivable 4,800 Equipment 60,900 Tax Expense             1,000 Accounts Payable $ 4,400 Accumulated Depreciation 7,400 Vanguard’s Capital 35,000 Rent Expense             5,000 Drawing 16,000 Salaries Expense 10,700 Prepaid rent 4,000 Service Revenue 65,000 Unearned Rent Revenue 8,300 Depreciation Expense 4,000 Supplies 4,000 Supplies Expense 200...
31) The following accounts were included on Aeroplane Consultants adjusted trial balance at December 31, 2018:...
31) The following accounts were included on Aeroplane Consultants adjusted trial balance at December 31, 2018: Accounts receivable $ 10,200 Accounts payable 16,000 Cash 7,500 Common stock 30,000 Dividends 12,000 Inventory 15,000 Sales taxes payable 1,350 Equipment 8,000 Interest expense 3,500 Note payable, due 8/31/21 60,000 Bonds payable 150,000 Salaries payable 7,000 Retained earnings 18,000 Unearned revenue 4,000 Prepaid supplies 2,000 Service revenue 44,000 Requirements: (Show all work) Total current assets? Total current liabilities?
The adjusted trial balance of Coastal Carolina Corporation at December 31, 2018 are shown as follows:...
The adjusted trial balance of Coastal Carolina Corporation at December 31, 2018 are shown as follows: Coastal Carolina Corporation Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Accounts Payable         75,000 Accounts Receivable       150,000 Accumulated Depreciation         30,000 Bonds Payable (due in 2020)         90,000 Cash         85,000 Common Stock         30,000 Cost of Goods Sold       280,000 Depreciation Expense         17,000 Dividends         20,000 Equipment       170,000 Interest Expense           3,000 Interest Payable           5,000 Inventory...
The December 31, 2018, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account...
The December 31, 2018, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credits Cash 22,700 Accounts receivable 330,000 Prepaid rent 13,000 Inventory 51,000 Office equipment 610,000 Accumulated depreciation—office equipment 254,000 Accounts payable 72,000 Note payable (due in six months) 63,000 Salaries payable 7,500 Interest payable 2,100 Common stock 400,000 Retained earnings 150,000 Sales revenue 750,000 Cost of goods sold 450,000 Salaries expense 112,500 Rent expense 39,000 Depreciation expense 61,000 Interest expense 4,200 Advertising expense...
The adjusted trial balance for China Tea Company at December 31, 2018, is presented below: Debit...
The adjusted trial balance for China Tea Company at December 31, 2018, is presented below: Debit Credit Cash 10,500 Accounts receivable 150,000 Prepaid rent 5,000 Inventory 25,000 Equipment 300,000 Accumulated depreciation - equipment 125,000 Accounts payable 30,000 Notes payable - due in three months 30,000 Salaries payable 4,000 Interest payable 1,000 Common stock 200,000 Retained earnings 50,000 Sales revenue 400,000 Costs of goods sold 180,000 Salaries expense 120,000 Rent expense 15,000 Depreciation expense 30,000 Interest expense 2,000 Advertising expense 2,500...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT