Accounting

LO.6, 7, 8 Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On September 14, when the land is worth $240,000, it is distributed to David. Assuming that David’s basis in his S corporation […]

LO.5, 6 McLin, Inc., is a calendar year S corporation. Its AAA balance is zero. a. McLin holds $90,000 of AEP. Tobias, the sole shareholder, has an adjusted basis of $80,000 in his stock. Determine the tax aspects if a $90,000 salary is paid to Tobias. b. Same as part (a), except that McLin pays

How are the shareholders taxed on the distributions? LO.6 On January 1, 2013, Kinney, Inc., an S corporation, reports $4,000 of accumulated E & P and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Frank, each of whom owns 500 shares of Kinney’s stock. Kinney’s nonseparately stated ordinary income for the

Determine the effects of these events on the AAA, stock basis, and AEP LO.6, 8, 9 Mary is a shareholder in a calendar year S corporation. At the beginning of the year, her stock basis is $10,000, her share of the AAA is $2,000, and her share of corporate AEP is $6,000. She receives a

LO.5, 6 Zebra, Inc., a calendar year S corporation, incurred the following items this year. Operating income $100,000 Cost of goods sold (40,000) Depreciation expense (MACRS) (10,000) Administrative expenses (5,000) §1231 gain 21,000 Depreciation recapture income 25,000 Short-term capital loss from stock sale (6,000) Long-term capital loss from stock sale (4,000) Long-term capital gain from

LO.5, 6 Maul, Inc., a calendar year S corporation, incurred the following items. Tax-exempt bond interest income $ 7,000 Sales 140,000 Depreciation recapture income 12,000 Long-term capital gain 20,000 §1231 gain 7,000 Cost of goods sold (42,000) Administrative expenses (15,000) Depreciation expense (MACRS) (17,000) Charitable contributions (7,000) a. Calculate Maul’s nonseparately computed income or loss.

What would be the share of this year’s income or loss items for James Billings, one of the Kitsch shareholders? 24.What would be the share of this year’s income or loss items for James Billings, one of the Kitsch shareholders? LO.5, 6 The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000

  Accounting Comprehensive Problem Selected transactions completed by Kornett company during its first fiscal year ended December 31, 2014 were as follows: Jan. 3. Issued a check to establish a petty cash fund of $4,500. Feb 26. Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680; miscellaneous

What two additional adjusting entries need to be made at the end of the year? (Select all that apply.) What amount would be reported for land on the balance sheet? What amount of net cash flow from operating activities would be reported on the statement of cash flows? (Enter cash outflows as negative amounts.) What amount of

  Problem 2-35 Effect of events on financial statements LO 2-1, 2-2, 2-3, 2-4, 2-5, 2-6   Davis Company   had the following balances in its accounting records as of December 31, 2013:     Assets  Liabilities   and Equity   Cash $ 51,000 Accounts   Payable $ 25,000   Accounts   Receivable 52,000 Common   Stock 95,000   Land