Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Dehna, Inc. (a "C" corporation) is l00% owned by Ms. Jill Smith. Both Dehna, Inc. and Jill Smith are cash basis, calendar year taxpayers. In addition to her ownership of Dehna,, Inc., Jill consistently earns substantial income from other sources, so she is in the marginal 35.0% federal tax bracket. Dehna, Inc. had $150,000 of accumulated earnings and profits as of l2/3l/2012 (the end of the prior tax year), and Dehna,, Inc. can justify the accumulation of $400,000 of earnings and profits as of 12/31/2013. Dehna, Inc. had the following activity during 2013:

Received interest income from Wells Fargo........ $ 200,000
Received gross rental income from a building of.. $ 500,000
Earned ordinary income from consulting of.......... $ 50,000
Gross income........................................... $ 750,000
Less depreciation on the building.......................... ($ 30,000)
Less property taxes on the building...................... ($ 40,000)
Less insurance on the building............................. ($ 20,000)
Less accounting & management fees for all
other work on the corporation................ ($ 60,000)
Corporate taxable income...................... $ 600,000
It is now l2/3l/2013, and you are meeting with Jill to advise her as to what steps, if any,
she should take regarding the corporation. As an aside, Jill absolutely hates paying any more
taxes than the absolute minimum she's legally required to pay.
REQUIRED:
( i) What, if anything, should be done on 31 December 2013?
( ii) What is Dehna, Inc.'s tax liability for 2013?
(iii) What, if anything, should be done by l5 March 2014?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M940126

Have any Question? 


Related Questions in Accounting Basics

Dine corp international publishes ratings and reviews of

Dine corp international publishes ratings and reviews of the world finest restaurants.following are the facts you need to prepare dine corp's march bank reconcilation. Balance per company records at end of month  $      ...

Assignmentduring your examination of the accounts

Assignment During your examination of the accounts receivable of Hope Ranch, a new client, you notice that one account is much larger than the rest, and you therefore decide to examine the evidence supporting this custom ...

Assignmentfinal take home examination on basic erp

Assignment Final Take Home Examination on Basic ERP Configuration Concepts Provide brief but clear and specific answers to the following questions. Consult any sources necessary, including SAP's Help features. 1. What ar ...

Careers in accountingaccounting is the study of how

Careers in Accounting Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

The budget director for bird house unlimited inc has

The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for November 20XX. Estimated sales for November Bird House 28,600 units at $33 per u ...

Accounting assignmentbullemployee theft is a major problem

Accounting Assignment • Employee theft is a major problem in the U.S. retail industry. Information obtained from SecurityInfoWatch reported that twenty three (23) major retailers alone apprehended over 1.1 million shopli ...

Accounting individual assignmentpart 1 - royal oak taxation

ACCOUNTING INDIVIDUAL ASSIGNMENT PART 1 - Royal Oak Taxation Advisory Service has the following transactions for the month of December 2016: Dec. 1 Commenced business by depositing $50 000 in a bank account in the name o ...

Part 1problem 2aagrichem industries manufactures fertilizer

Part 1 PROBLEM 2A AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer is produced in 500-pound batches; the normal level of production is 250 batches of fertilizer per month. T ...

1 what does it mean to create a culture of honesty openness

1. What does it mean to create a "Culture of Honesty, Openness, and Assistance?" Give some examples from an organization with which you have been affiliated. (250 words) 2. Review the section Preventing Fraud-A Sumary an ...

Maher inc reported income from continuing operations before

Maher Inc. reported income from continuing operations before taxes during2014 of $790,000. $790,000 Additional transactions occurring in 2014 but not considered in the $790,000 are as follows. 1. The corporation experien ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro