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In: Accounting
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single and she claims the $12,000 standard deduction for 2018. Purple Company is Kirsten's only source of income. Ignoring any employment tax considerations, compute Kirsten's after-tax income for each of the following situations. Click here to access the 2018 individual tax rate schedule to use for this problem. Assume the corporate tax rate is 21%. When required, carryout intermediate tax computations to the nearest cent and then round your final tax liability to the nearest dollar. a.
If Purple Company is a proprietorship and Kirsten withdraws $50,000 from the business during the year; Kirsten claims a $40,000 deduction for qualified business income ($200,000 × 20%). Kirsten's taxable income and after tax income are?
Purple Company is a C corporation and the corporation pays out all of its after-tax income as a dividend to Kirsten. Note: Individual taxpayers received preferential treatment regarding the taxation of qualified dividends (0%,15%,20%). For single taxpayers, the 0 percent rate applies to the first $38,600 of taxable income. Purple Corporation's after-tax income and Kristen's after tax income are?
Purple Company is a C corporation and the corporation pays Kirsten a salary of $158,000. Kirsten's after-tax income is
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Purple Company has $200,000 in net income for 2018 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for
2018 before deducting any compensation or other
payment to its sole owner, Kirsten. Kirsten is single and she
claims the $12,000 standard deduction for 2018. Purple Company is
Kirsten’s only source of income. Ignoring any employment tax
considerations, compute Kirsten’s after-tax income if:
a. Purple Company is a proprietorship and Kirsten withdraws
$50,000 from the business during the year; Kirsten claims a $40,000
deduction for qualified business income ($200,000 x 20%).
b....
Purple Company has $200,000 in net income for 2020 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for 2020 before
deducting any compensation or other payment to its sole owner,
Kirsten. Kirsten is single and she claims the $12,400 standard
deduction for 2020. Purple Company is Kirsten's only source of
income.
Ignoring any employment tax considerations, compute Kirsten's
after-tax income for each of the following situations.
Click here to access the 2020 individual tax rate schedule to
use for this problem. Assume the corporate tax rate is 21%.
When required,...
Purple Company has $200,000 in net income for 2017 before deducting any compensation or other payment...
Purple Company has $200,000 in net income for 2017 before
deducting any compensation or other payment to its sole owner,
Kirsten. Kirsten is single and has no dependents. She claims the
$6,350 standard deduction, and her personal exemption is $4,050 for
2017. Purple Company is Kirsten's only source of income.
Ignoring any employment tax considerations, compute Kirsten's
after-tax income for each of the following situations.
Click here to access the corporate tax table and 2017 individual
tax rate schedule to...
Purple Company records $200,000 in net income for 2019 before deducting any compensation or other payment...
Purple Company records $200,000 in net income for 2019 before
deducting any compensation or other payment to its sole owner,
Kirsten. Kirsten is single and she claims the $12,200 standard
deduction. Purple Company is Kirsten's only source of income.
Ignoring any employment tax considerations, compute Kirsten's
after-tax income for each of the following situations.
Click here to access the 2019 individual tax rate schedule to
use for this problem. Assume the corporate tax rate is 21%.
Purple is a C...
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation...
In the current year, Azure Company has $350,000 of net operating
income before deducting any compensation or other payment to its
sole owner, Sasha. In addition, Azure has interest on municipal
bonds of $25,000. Sasha has significant income from other sources
and is in the 39.6% marginal tax bracket.
Based on this information, determine the income tax consequences
to Azure Company and to Sasha during the year for each of the
following independent situations. (Ignore the 3.8% Medicare surtax
on...
In the current year, Azure Company has $350,000 of net operating income before deducting any compensation...
In the current year, Azure Company has $350,000 of net operating
income before deducting any compensation or other payment to its
sole owner, Sasha. In addition, Azure has interest on municipal
bonds of $25,000. Sasha has significant income from other sources
and is in the 39.6% marginal tax bracket.
Based on this information, determine the income tax consequences
to Azure Company and to Sasha during the year for each of the
following independent situations. (Ignore the 3.8% Medicare surtax
on...
Suppose the income statement for Goggle Company reports $127 of net income, after deducting depreciation of...
Suppose the income statement for Goggle Company reports $127 of
net income, after deducting depreciation of $27. The company bought
equipment costing $100 and obtained a long-term bank loan for $102.
The company’s comparative balance sheet, at December 31, is
presented under Tab 1 below.
Required:
1. Calculate the change in each balance sheet
account and indicate whether each account relates to operating,
investing, and/or financing activities (+ for increase and − for
decrease).
2. Prepare a statement of cash...
Boeing had $1,000,000 net income in 2018. On January 1, 2018, there were 200,000 shares of...
Boeing had $1,000,000 net income in 2018. On January 1, 2018,
there were 200,000 shares of common stock outstanding. There are
30,000 options to buy common stock at $40 a share outstanding. The
market price of the common stock averaged $50 during 2018. The tax
rate is 30%.
During 2018, there were 40,000 shares of preferred stock
outstanding. The preferred is $100 par, pays $3.50 a year
dividend.
Boeing issued $2,000,000 of 8% convertible bonds at face value
during 2017....
A company has net income of $200,000, a profit margin of 7%, and an accounts receivable...
A company has net income of $200,000, a profit margin of 7%, and
an accounts receivable balance of $120,000. Assuming 100% of sales
are on credit, what is the company's days' sales in
receivables?
Prime Real Estate Ltd. has determined that its Net Income for Tax Purposes, before any CCA...
Prime Real Estate Ltd. has determined that its Net Income for
Tax Purposes, before any CCA deductions, was $ 95,000, for the
taxation year ending December 31, 2019. As Prime Real Estate Ltd.
does not have any Division C deductions, Taxable Income before any
deductions for CCA would also amount to $ 95,000.
On January 1, 2019, Prime Real Estate Ltd. had the following UCC
balances:
Class 1 (Two
Buildings)
$ 600,000
Class
8
230,000
Class
10
120,000
Class 10.1...
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