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

Problem -a list of transactions appears below indicate

Problem - A list of transactions appears below. Indicate which accounting elements of the business are affected by placing in the respective columns the amount and the + (increasing) - (decrease) sign or NA, if the eleme ...

Assignmentpaper 1excel spreadsheet and 1-2 pagesconsider

Assignment Paper #1 Excel Spreadsheet and 1-2 pages Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) ...

Accounting paper assignment start-up budgetingfor this

Accounting Paper Assignment: Start-up Budgeting For this assignment, you will decide what type of budget to implement for a start-up company. Write a three to four page paper in which you: 1. Summarize the type of manufa ...

Study guide1 what is the beta of a firm whose equity has an

STUDY GUIDE 1. What is the beta of a firm whose equity has an expected return of 21.30%, the risk-free rate is 7%, and the expected return on the stock market is 18%? 2. Two reasons for the agency problem in modern corpo ...

1 as a small business owner in todays economy what three

1. As a small business owner in today's economy, what three financial reports would you use on a regular basis? What information would you find on each statement? What decisions might each statement help you make? Please ...

Assignmentsec 10k link Assignment SEC 10K Link:

Assignment SEC 10K Link: https://www.sec.gov/Archives/edgar/data/908255/000090825516000077/a10k12312015.htm Position: 358 Income Statement: 53 Balance Sheet: 52 Statement of Stockholders Equity: 56 Statement of Cash Flow ...

Requirement 1 -it was early november 20x5 and the

REQUIREMENT 1 - It was early November 20X5, and the Hydromaint people requested a meeting with you and Tom Lockhart.  They wished to brief you on several 20X5 events and strategy changes. Nick Riley reported that the mai ...

Assignmentpart iexplain what you learn about the

Assignment PART I Explain what you learn about the disclosures of your SEC 10-K company relating to Income Taxes. Your comments should relate to net income or loss as well as to the balance sheet treatment and disclosure ...

Problem 1bart exchanges some real estate basis of 80000 and

Problem 1 Bart exchanges some real estate (basis of $800,00 and fair market value of $1 million) for other real estate owned by Roland (basis of $1.2 million and fair market value of $900,00) and $100,000 in cash. The re ...

Task -you have recently started as the financial accountant

Task - You have recently started as the Financial Accountant in a new organisation, 'Fruito'. Fruito is a local fruit shop which has both a retail shop selling to the public and distributes produce to other local busines ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen