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bekas [8.4K]
3 years ago
10

Holbrook, a calendar year S corporation, distributes $15,000 cash to its only shareholder, Cody, on December 31. Cody's basis in

his stock is $20,000, Holbrook's AAA balance is $8,000, and Holbrook holds $2,500 AEP before the distribution. According to the distribution ordering rules, complete the chart below to indicate how much of the $15,000 is from AAA and AEP as well as how Cody's stock basis is affected.
Business
1 answer:
insens350 [35]3 years ago
6 0

Answer:

AAA account balance after distribution is

0

AEP account balance after distribution is

0

Cody’s stock basis $7,500

Explanation:

AAA account

Distribution from Account

8,000 not taxable

Effect on Stock Basis

(8,000)

Balance after Distribution

0

AEP account

Distribution from Account

2,500 is not a taxable dividend and it does not tend to affect stock basis because it is from a previous C-corporation

Effect on Stock Basis

0

Balance after Distribution

0

Cody’s stock basis

Distribution from Account

4,500 not taxable

Effect on Stock Basis

(4,500)

Balance after Distribution

20,000-8,000-4,500= $7,500

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<u>Solution and Explanation:</u>

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Less: the Personal Exemption($4050*2) $(8,100.00)  

Ans (a) Abner's & Bette taxable income in 2017 $   59,200.00    

<u> The Personal Exemption Amount</u>  

The personal exemption amount for 2017 is $4,050.  

Standard Deduction Amounts  

The 2017 standard deduction amounts will be as follows:  

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2 years ago
Which of the following is a good marketing tactic for reaching out to cold prospects?
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Answer:

A good marketing tactic for reaching cold prospects is Advertising

Explanation:

A cold prospect is a qualified potential customer that has little or no knowledge about your goods and service or about your company. to make them know about you can reach them through target advertising because you don't have their personal contacts yet to do them a personalized email or calls.

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The following information pertains to Crane Video Company:1. Cash balance per bank, July 31, $7,263.2. July bank service charge
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Answer:

A. Prepare a bank reconciliation at July 31.

                                        Crane Video Company

                                             Bank Reconciliation

                                                        July 31

Cash balance per bank statement                             $7,263

Add: Deposits in transit                                                 1300

                                                                                      8,563

Less: Outstanding checks                                              591

Adjusted cash balance per bank                                $7,972

Cash balance per books                                             $7,284

Add: Collection of N/R ($700 plus

accrued interest $36 less collection

fee $20)                                                                          716

                                                                                       8,000

Less: Bank service charge                                               28

Adjusted cash balance per books                               $7,972

B. Journalize the adjusting entries at July 31 on the books of Crane Video Company.

The adjusting entry would be,

Date           Account Title                         Debit        Credit

Jul 31         Cash                                         716

                 Miscellaneous Expense           20

                 Notes Receivable                                         700

                 Interest Revenue                                            36

(to record Collection of N/R ($700 plus accrued interest $36 less collection fee $20)

31              Miscellaneous Expense            28

                 Cash                                                                28

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Answer:

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= $27.20

By adding the variable overhead rate per hour and the fixed overhead rate per hour we can find out the predetermined overhead rate

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