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lyudmila [28]
3 years ago
11

Suppose Clampett, Inc., terminated its S election on August 28, 2019. At the end of the S corporation's short tax year ending on

August 28, J.D.'s stock basis and at-risk amounts were both zero (he has never had debt basis), and he had a suspended loss of $20,350. In 2020, J.D. made additional capital contributions of $5,350 on March 15 and $13,050 on September 20. How much loss may J.D. deduct in 2020
Business
1 answer:
NISA [10]3 years ago
8 0

Answer:

$5,000

Explanation:

Since Suppose Clampett, Inc., terminated its S election on August 28, 2019, it implies that the ending date for post transition termination period is September 15, 2019. This date is the extended due dat for S corporation to file final tax return.

As J.D. made additional capital contributions of $5,350 on March 15 and $13,050 on September 20, only the $5,350 contribution made on March 15 falls within the post transition termination period of September 15, while the $13,050 contribution made on September 20 falls outside the post transition termination period.

Therefore, J.D. May only deduct $5,000 in 2020.

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Last year Rennie Industries had sales of $395,000, assets of $175,000 (which equals total invested capital), a profit margin of
maxonik [38]

Answer: 5.9%

Explanation:

Before:

Equity is calculated as:

= Total Assets / Equity Multiplier

= $ 175,000 / 1.2

= $ 145,833

Therefore, ROE will be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 145,833

= $ 20935 / $145,833

= 0.1436

= 14.36%

After:

New Total Assets will be:

= $ 175,000 - $ 51,000

= $ 124,000

Equity

= Total Assets / Equity Multiplier

= $ 124,000 / 1.2

= $ 103,333

ROE will then be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 103,333

= $ 20935 / $ 103,333

= 0.2026

= 20.26%

Therefore, the change in ROE will be:

= 20.26% - 14.36%

= 5.9%

= 4.035%

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3 years ago
Mr. and Mrs. Pitt filed a joint tax return in 2017. The couple divorced in 2018. The IRS audited their 2017 return and determine
AURORKA [14]

Answer:

C. Because the couple is divorced, the IRS must apportion the deficiency between Mr. and Mrs. Pitt based on their relative contribution to their 2015 taxable income.

Explanation:

Because Mr and Mrs Pitt filed for a joint tax return in 2017 and got divorced in 2018 and IRS audited their tax return and found that they both underpaid their tax, the IRS must apportion the deficiency 50-50 between both of them based on their separate returns.

3 0
3 years ago
You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance
N76 [4]

Answer:

$46.43

Explanation:

Calculation for Below what stock price level would you get a margin call

First step is to calculate the Loan amount

Loan amount=(100 shares × $130 × 0.5

Loan amount= $6,500 × 0.5 = $3,250

Now let calculate Stock price level

0.30 = (100P $3,250)/100P

30 - P = 100P - $3,250

30-100P= - $3,250

-70P = -$3,250

P=$3,250/70

P = $46.43

Therefore Below what stock price level would you get a margin call will be $46.43

7 0
3 years ago
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