In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and...

In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of Riflebird, report this information on their respective Federal income tax returns for the current year under the following assumptions?

If an amount is zero, enter "0".

a. Riflebird Company is a proprietorship (Roger did not make any withdrawals from the business).

Roger reports $ net operating profit and $ long-term capital loss on his tax return. Riflebird Company, as a proprietorship, files no entity Federal income tax return for the year.

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A sole proprietorship is not a taxable entity separate from the individual who owns the proprietorship. Unlike proprietorships, partnerships, and S corporations, C corporations are subject to an entity-level Federal income tax.

b. Riflebird Company is a C corporation (no dividends were paid during the year).

Roger reports $ net operating profit and $ long-term capital loss on his tax return. Riflebird Company will report taxable income of $ on its Form 1120

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Expert Solution

ekkarill92 answered 1 year ago

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