26 Jul WHAT ARE THE CORPORATE AND SHAREHOLDER RESTRICTIONS ON MAKING A S CORPORATION ELECTION?
What is a LLC?what are separately stated items?What are the corporate and shareholder restrictions on making a S corporation election?Please discuss the requirements of a S Corp.how do you determine a S corp shareholder’s basis in his stock?Sam is the sole shareholder of XYZ, Inc. (S corp.) and serves as CEO of XYZ, Inc. If XYZ has net earnings of $1,000,000 in 2013, can Sam take the entire $1 million out of XYZ in the form of distributions (thus avoiding SE taxes), or must he take some of the earnings as wages (subject to SE taxes)? Where and how do you draw the line?1. (TCO C) Miyasyke, Inc., a calendar year S corporation, has five equal shareholders at the end of the tax year. Miyasyke had $75,000 of taxable income. Miyasyke made distributions to its shareholders of $32,000 each, for a total of $160,000. Each shareholder’s basis in the S corporation is $100,000 at the beginning of the tax year. What amount from Miyasyke should be included in each shareholder’s gross income? (Points : 10)$0$15,000$32,000$47,000Question 2. 2. (TCO C) A sole proprietorship incorporated on January 1 and elected S corporation status. The owner contributed the following assets to the S corporation.Basis Fair market valueMachinery $7,000 $8,000Building 11,000 100,000Cash 1,000 1,000Two years later, the corporation sold the machinery for $4,000 and the building for $110,000. The machinery had accumulated depreciation of $2,000, and the building had accumulated depreciation of $1,000. What is the built-in gain recognized on the sale? (Points : 10)$100,000$99,000$6,000$0Question 3. 3. (TCO F) Which of the following items must be separately stated on Form 1120S, U.S. Income Tax Return for an S corporation, Schedule K-1? (Points : 10)Mark-to-market incomeUnearned revenueSection 1245 gainGain or loss from the sale of collectiblesQuestion 4. 4. (TCO F) For which of the following entities is the owner’s basis increased by the owner’s share of profits and decreased by the owner’s share of losses, but is not affected by the entity’s bank loan increases or decreases? (Points : 10)S corporationC corporationPartnershipLimited liability company
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.