Question
In: Accounting
Danni is a single 30 percent owner of Kolt (a business entity). In the current year,...
Danni is a single 30 percent owner of Kolt (a business entity). In the current year, Kolt reported a $1,000,000 business loss. Answer the following questions associated with each of the following alternative scenarios: (Leave no answer blank. Enter zero if applicable.) Problem 15-55 Part b b. Kolt is organized as an LLC taxed as a partnership. Thirty percent of Kolt’s loss is allocated to Danni. Danni works 20 hours a week on Kolt business activities (she is not considered to be a passive investor in Kolt). Danni has a $400,000 basis in her Kolt ownership interest and she also has a $400,000 at-risk amount in her investment in Kolt. Danni does not report income or loss from any other business activity investments. How much of the $300,000 loss allocated to her from Kolt is Danni allowed to deduct this year?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Danni is a single 30 percent owner of Kolt (a business entity). In the current year,...
Danni is a single 30 percent owner of Kolt (a business entity).
In the current year, Kolt reported a $1,000,000 business loss.
Answer the following questions associated with each of the
following alternative scenarios: (Leave no answer blank. Enter zero
if applicable.) Problem 15-55 Part a a. Kolt is organized as a C
corporation and Danni works 20 hours a week as an employee for
Kolt. Danni has a $200,000 basis in her Kolt stock. How much of
Kolt’s loss...
55. Danni is a single 30 percent owner of Kolt (a business entity). In the current...
55.
Danni is a single 30 percent owner of Kolt (a business entity).
In the current year, Kolt reported a $1,000,000 business loss.
Answer the following questions associated with each of the
following alternative scenarios:
a. Kolt is organized as a C corporation and
Danni works 20 hours a week as an employee for Kolt. Danni has a
$200,000 basis in her Kolt stock. How much of Kolt’s loss is Danni
allowed to deduct this year against her other income?...
AJ is a 30 percent partner in the Trane Partnership, a calendar year-end entity. On January...
AJ is a 30 percent partner in the Trane Partnership, a calendar
year-end entity. On January 1, AJ has an outside basis in his
interest in Trane of $77,500, which includes his share of the
$53,600 of partnership liabilities. Trane generates $43,800 of
income during the year and does not make any changes to its
liabilities. On December 31, Trane makes a proportionate
distribution of the following assets to AJ to terminate his
partnership interest: (Leave no answer blank. Enter...
What are the five main factors a business owner should consider when selecting a business entity?
What are the five main factors a business owner should consider
when selecting a business entity?
The business entity assumption requires that a business be accounted for separately from other business entities, including its owner or owners.
TRUE OR FALSE?The business entity assumption requires that a business be
accounted for separately from other business entities, including
its owner or owners.Financial statements include: the balance sheet, income
statement, and statement of cash flows.Posting is the transfer of the information from each journal
entry to the ledger.The principles of internal control include: establish
responsibilities, maintain adequate records, insure assets,
separate recordkeeping from custody of assets and perform regular
and independent reviews.The accounts receivable method to estimate bad debts obtains...
Friends Jackie (0.5 percent owner), Jermaine (1 percent owner), Marlon (2 percent owner), Michael (86 percent owner),
Friends Jackie (0.5 percent owner), Jermaine (1 percent owner), Marlon (2 percent owner), Michael (86 percent owner), and Tito (10.5 percent owner) are shareholders in Jackson 5 Inc. (an S corporation). As employees of the company, they each receive health insurance ($10,000 per year benefit), dental insurance ($2,000 per year benefit), and free access to a workout facility located at company headquarters ($500 per year benefit). What are the tax consequences of these benefits for each shareholder and for Jackson...
Is there a difference in the "owner" of the company in the perspective of Proprietary, Entity,...
Is there a difference in the "owner" of the company in
the perspective of Proprietary, Entity, and Entreprise theory? What
do you think of Fund theory's view?
These days, not only single business owner but also partnership business owners are suffering from massive...
These days, not only single business owner but also partnership
business owners are
suffering from massive competition as a result they are compelled
to quit their
business because of unlimited liability. Some experts recommend you
to convert your
sole proprietorship business into a corporation to avoid the threat
of massive
competition and unlimited liability. Now you are thinking of
converting your business
into corporation then underline the benefits of corporation as
compared to other form
of business with reference to...
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does...
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a
partnership). Sarah does not do any work for Beehive. Beehive LLC.
reported $600,000 of taxable business income for the year (2020).
Before considering her 50 percent business income allocation from
Beehive and the self-employment tax deduction (if any), Sarah’s
adjusted gross income is $150,000 (all employee salary). Answer the
following questions for Sarah.
What is Sarah’s net investment income tax liability (assume no
investment expenses)?
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a partnership). Sarah does...
Sarah (single) is a 50 percent owner in Beehive LLC (taxed as a
partnership). Sarah does not do any work for Beehive. Beehive LLC.
reported $600,000 of taxable business income for the year (2020).
Before considering her 50 percent business income allocation from
Beehive and the self-employment tax deduction (if any), Sarah’s
adjusted gross income is $150,000 (all employee salary). Answer the
following questions for Sarah.
c. What is Sarah’s self-employment tax
liability?
d. What is Sarah’s additional Medicare tax...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
ADVERTISEMENT