Assignment: Federal Taxation-Comprehensive Topics
Comprehensive Problem. Marital Aids Inc. reported the following results last year:
|
Gross income from sales
|
$50,000
|
|
Salaries
|
20,000
|
|
Overhead
|
25,000
|
|
Capital gains
|
200,000
|
|
Net operating loss from previous year
|
30,000
|
|
Dividends from U.S. sources
|
40,000
|
|
Tax-exempt interest
|
10,000
|
|
Taxable interest
|
35,000
|
|
Income tax paid (including $59,650 on capital gains)
|
62,050
|
If the corporation has only four individual shareholders, compute the following:
1. Adjusted ordinary gross income.
2. Personal holding company income.
3. Undistributed personal holding company income.
4. Current dividend required to avoid personal holding company tax.
5. What impact would it have if taxable interest was only $12,000 and there was no NOL carryover?