Ch 22

In: Business and Management

Submitted By snydere02
Words 1347
Pages 6
CHAPTER 22

S CORPORATIONS

Examination Questions

1. During 2013, an S corporation incurs the following transactions.

Net income from operations $60,000

Interest income from savings account 28,000 Long-term capital gain from sale of securities 54,000 Short-term capital loss from sale of securities 44,000

The corporation's passive investment income for 2013 is: a. $28,000. b. $38,000. c. $82,000. d. $142,000. e. None of the above.

2. During 2013, Emerald Corporation incurs the following transactions.

Net income from operations $125,000

Long-term capital gain from sale of securities 55,000

Short-term capital loss from sale of securities 35,000

Emerald maintains a valid S election and does not distribute any dividends to its sole shareholder, Dakota. As a result, Dakota must recognize: a. Ordinary income of $125,000 and long-term capital gain of $20,000. b. Ordinary income of $125,000, long-term capital gain of $55,000, and $35,000 short-term capital loss. c. Ordinary income of $125,000, long-term capital gain of $55,000, and $3,000 short-term capital loss. d. Ordinary income of $125,000. e. None of the above.

3. During the year, an S corporation incurs a $110,000 net operating loss. Eloise, the sole shareholder, has a $75,000 stock basis, and there is a $100,000 balance in AAA at the beginning of the year. Which statement is correct? a. Eloise may show a $110,000 loss deduction on her Form 1040. b. At the end of the year, there is a zero basis in both Eloise’s stock basis and the AAA. c. At the end of the year, Eloise has a zero basis in the stock, and there is a negative $10,000 balance in the AAA. d. Eloise may deduct $100,000 of the loss. e.…...

Similar Documents

Corporate Tax Chapter 22

...Chapter 22 Xiaonan Li 11. a. No. b. No. c. No. d. Yes. e. Yes 19. a. – d. + g. – j. + m. + b. + e. – h. – k. + n. – c. – f. + i. – l. – o. – 24. a. Net sales $140,020 Depreciation recapture income 14,000 $154,020 Deduct: Cost of goods sold $42,000 Administrative expenses 15,000 Depreciation expense 13,000 (70,000) Nonseparately computed income $ 84,020 b. $84,020 ÷ 4 = $21,005 28. a. Absent a per-books election, the income is allocated by assigning an equal portion of the annual income of $1 million to each day (or $2,739.72 per day) and allocating the daily portion among the two shareholders. Thomas is allocated 50% of the daily income for 90 days from January 1 through April 1, or $124,657.72 ($2,739.73 ÷ 2 ×91). Thomas’s estate would be allocated 50% of the income for the 274 days from April 2 through December 31, or $375,342.28 ($500,000 – $124,657.72). Ralph would be allocated $500,000 for the full year. b. If the per-books election is made, the income of $400,000 from January 1 through April 1 is divided equally between Ralph and Thomas, so that each would be allocated $200,000. The income of $600,000 from April 2 through December 31 is divided equally between Ralph and Thomas’s estate, or $300,000 to each. 34. a. Beginning AAA $715,000 Add: Sales income ......

Words: 706 - Pages: 3

Lab 22

...Lab 22 Name __Lance Lanier____ Write an essay of 500 words, giving examples on the use of Kirchhoff’s Current Law. Kirchhoff's Current Law is one of two fundamental laws in electrical engineering, the other being Kirchhoff's Voltage Law. Kirchhoff’s Current Law is a fundamental law, as fundamental as Conservation of Mass in mechanics, for example, because Kirchhoff’s Current Law is really conservation of charge. Kirchhoff's Voltage Law and Kirchhoff’s Current Law are the starting point for analysis of any circuit. Kirchhoff’s Current Law and Kirchhoff's Voltage Law always hold and are usually the most useful piece of information you will have about a circuit after the circuit itself. People and computer programs both use Kirchhoff's Voltage Law and Kirchhoff’s Current Law for circuit analysis. Kirchhoff's Current Law is not as complex as it might seem.  All one really needs to know is that charge is conserved, so Kirchhoff's Current Law is really based on one simple fact: Charge can neither be created nor destroyed. From that basic fact we can get to Kirchhoff's Current Law.  Despite that simplicity, it is a fundamental, widely used law that you need to know to go very far in electrical engineering. The principle of conservation of electric charge implies that at any node in an electrical circuit, the sum of currents flowing into that node is equal to the sum of currents flowing out of that node. The algebraic sum of currents in a network of conductors meeting at a......

Words: 516 - Pages: 3

Ch 22 Mini Case

...| Jen Poe | | | | | | | BUS657 Corporate Managerial Finance | | | | | | | | | | | | | Week #5 | | | | | | | Assignment - Chapter 22 Mini - Case | | | | | | | | | | | | | | | | | | | 1)      Calculate BB's current cash conversion cycle. | | | | | | | | | | | | | BB's Ratios: | | | | | | | Average Age of Inventory | $842,020 / [(0.57 *$43,803,000) /365] | | 12.31 | days | | Average Collection Period | $3,240,222/($43,803,000/365) | | 27.00 | days | | Average payment Period | $1,826,070/[(0.57*$43,803,000)/365] | | 26.695 | days | | | | | | | | | BB's Cash Conversion Cycle = | AAI + ACP - APP | | | | | | BB's Cash Conversion Cycle = | 12.31 + 27 - 26.695 | | | | | | BB's Cash Conversion Cycle = | 12.615 | days | | | | | | | | | | | | | | | | | | 2)      BB currently uses 3,000 ingots of aluminum each year to manufacure bracelet blanks. The order cost (including shipping) is $5,000 per order, and carrying costs are $75 per unit per year. Determine the economic order quantity, the amount of safety stock, and the reorder point for aluminum ingots assuming there is a 1-week lead time and the firm would like a safety stock of 3%. | | | | | | | | | | Economic Order Quantity = | √2 x current use x order cost / carry cost per unit per year = | | | | | √2 x 3,000 x 5,000 / 75 = | 632.46 | per order | | | | | | | | | ...

Words: 884 - Pages: 4

Biz, 22

...22 条 商 规 对于在市场营销中什么做法可行,什么做法不可行,美国营销问题专家在研究了 25 年之 久后发现 22 条商规   对于在市场营销中什么做法可行,什么做法不可行,美国营销问题专家在研究了 25 年之久后发现:成功向营销计划几乎总是与市场中的一些基本规律相符。 这些基本规律如今 被称为市场营销中的经典法则,它们被归纳为 22 条。记住:违背这些法则意味着拿自己企 业的命运去冒险。    一、市场领先法则    市场营销中最重要的一点是创造一类能使你成为市场"第一"产品,这比努力使人们相 信你能比产品首创者提供更好的质量或服务,要容易得多。总之,"第一"要胜过"更好"。    二、产品创新法则    当你不能成为某类产品中的第一时,就应努力去创造另一类新产品。因为潜在用户总 是乐于接受新型产品。    三、观念竞争法则    在市场营销世界中,最好的产品只是作为一种观念在于用户或潜在用户头脑中,而人 们津津乐道的所谓最好的产品,是并不存在的,市场营销不是产品之争,而是观念之争。    四、深入人心法则    这条法则来自于"观念竞争法则"抢先深入人心胜过抢先进入市场。而人们一旦形成某 种观念,就很难改变,要想进入人们的头脑必须选择"急风暴雨"式的战略。    五、概念集中法则    市场营销中最为成功的方法是使潜在用户心目中对本公司提供的产品或服务拥有一个 名词或概念。这个名词或概念必须是简单易记、朗朗上口的。    六、概念专有法则    一个公司必须拥有自己专有的概念,方能在市场营销中获胜,如果一个概念被你的竞 争对手在用户心目中开成,你想用同样的概念去赢得客户,其结果只能是徒劳无益。    七、阶梯定位法则    任何同类商品,都会在消费者心目中形成一个选购顺序的阶梯,在这一阶梯上,各种 品牌的商品各占一层,而你的产品的营销计划要与其在市场阶梯中所处的地位相符。    八、两强相争法则    最初,某种新类型产品在市场中的地位如同一个多级的梯子,逐渐地,这个梯子就变 成了只有现货及,成功的营销商将致力于跻身市场的两强之中。    九、针对第一法则    若想争取第二,就应采取针对市场第一的方针。    十、品种细分法则    随着时间的推移,某类产品总是从单一的品种细分为很多品种,而每一个不细分品种 都将成为分立的、独特的主体存在,都有其领先品牌。    十一、远期效果法则    一些市场营销做法的长期效果往往与其短期效果相背相反,而成功的营销行为应在长 期内显现效力。    十二、商标扩展法则    商标扩展是将一个成功产品的商标用列此公司计划推出的一个新产品上,它将不可避 免地给用户造成商标雷同的印象。而事实说明:商标扩展是无效的。    十三、有所牺牲的法则    成功的市场营销必须是懂得有所牺牲。这包括三方面的牺牲:产品系列,目标市场以 及不断的变化。 成功的公司不用成为涵盖所有产品系列和目标市场的全才,因为全才是软弱 的。    十四、对立特征法则    对任何一种产品的特征,总存在另一种与之相对立的有效特征。成功的营销策略是寻 找出与领先者对立的特征,记住:是"对立",而不是"相似",这样才能与之相抗衡。    十五、坦诚相见的法则    市场营销有如下令人吃惊的论断:使自己产品深入人心的最有效的方法是先承认自己 的不足,因为潜在用户会在你承认自己的短处时发现你的长处。    十六、唯一策略法则    事实上,成功的营销策略并不是大量细小而高超的努力的总和,在任何既定条件下,......

Words: 4641 - Pages: 19

Catch 22

...Catch 22 Mr. Secretary, By your request I have researched the directive known as Catch 22. After extensive research through various sources, I am now able to present you with the information I have gathered. I will first define the term for you then I will explain what I see as the best solution to your proposal of its reinstatement. A Catch 22 is essentially a paradox by which a statement leads to the contradiction of that very statement. The term Catch 22 was coined by Joseph Heller and refers to the US Army clause 22 which states: “All persons with mental issues should be removed from active combat upon request; however, requesting removal from active combat is a sign of mental stability as it is the self preservation function of the brain working.” An individual’s recognition of his mental state shows his cognitive ability to understand and value his own safety, therefore, making his mentally capable of the duties at hand. So you see, Mr. Secretary, the Catch 22 is a very assuming and entrapping clause that only takes into account one’s ability to recognize self-preservation. As defined above, the Catch 22 directive is an entrapment tool that was used by the US Armed Forces to avoid losing capable soldiers in a time of high stakes and world war. Mr. Secretary, I believe your interest in re-instituting this clause must have been stifled by the above mentioned; however, if you believe there is sufficient reason to press on with this proposal, allow me to curb your......

Words: 499 - Pages: 2

Catch-22

...Catch-22 “You wouldn’t be normal if you were never afraid. Even the bravest men experience fear. One of the biggest jobs we all face in combat is to overcome fear.”(ch. 9) In times where desperate times call for desperate measures, the novel Catch-22, writing by Joseph Heller, follows the life of a B-25 fighter pilot named John Yossarian, in addition to other members of his squadron. Yossarian is the key protagonist of the novel who finds a more important mission than the one assigned to him while in the air force, and this is to preserve his own life at all costs. Over the course of this novel, this young man finds himself stationed on a small island of Pianosa, off the west coast of Italy, in the Mediterranean Sea. Placed under the command of Major Major, and Major De-Coverley, as well as General Dreedle, Yossarian now finds himself faced with the predicaments of an overbearing and abusing bureaucracy, as well as the contemplation of sanity vs. insanity as his ticket out of this station. The theme to be best directed with Catch-22 is the unknowing between truth and falsehood. In addition to that, is the blind sight between who are really your friends, and your enemies. Joseph Heller presents a vast arrangement of symbolism in the novel. First and foremost being the man in the white cast at the start of the novel. When he was brought to the hospital, the other men viewed him in such a way that it was ignored that he was a man, but was seen more as a viewing...

Words: 876 - Pages: 4

Unit 22 M1

...Unit 22: Q1) explain with examples from the case above whether a duty of care existed between the businesses mentioned and their victims. A1) there were some duty of care between the bread business and the customer. The premier foods spokesman said, “We apologise profusely for the distress caused as a result of the isolated incident.” They also said, “as soon as this complaint was made we stopped all bakery production at that site and appointed an independent specialist contractor to conduct thorough investigation.” This shows us that there is a duty of care between the business and the customer as they understand the mistake they have made and investigated further into the premises where the bread was made. Ronald Lim, also the owner of a Chinese restaurant almost served a sweet and sour sauce which had a mouse in the bowl and had been fined £30,000. This shows that the duty of care on the customers of the Chinese restaurant was not shown. Q2) explain with evidence which suggests that the duty of care owed by these businesses were breached? A2) the evidence which shows that the duty of care was breached by these businesses are that they failed to proceed with any quality checks on their products. If their checks had been completed thoroughly there would not have been bread or sweet and sour sauce with mouse’s in it. If this had also been completed the two businesses wouldn’t have found themselves in this situation of paying fines and affecting their reputation. Q3) were...

Words: 362 - Pages: 2

22 Keys to Sales Success

...Alex Boden Financial Planning The book 22 Keys to Sales Success by James Benson and Paul Karasik gives insight on how to become successful in the financial world. There have been changes made to the financial industry over the past few years and as a result the way financial products are sold has been affected. The authors show that selling is more than just describing products and filling needs but an informed approach with a focus on trust and relationships. The book shows ways to make more money and achieve higher levels of success. The book starts with the first key to selling is maintaining control of the sales process and learning to detect, then control, the clients fears. The customer fears making the wrong decision and that can lead to no decision being made at all. This problem can be solved by making a plan specifically for the clients needs with credible information to help support your plans ideas. The clients fear of change can be solved by giving clients a guide on what they can expect in future meetings and any other processes along the way. Buyers often fear giving up control and this can lead them to delaying the process or making impossible demands. To counteract this fear it is as simple as asking permission to ask questions and find an agreeable manner to proceed with the sales discussions. The clients fear of losing self esteem can be overcome by letting them know that the markets are very......

Words: 1036 - Pages: 5

Unit 22

...Unit 22 P3: Compare different research methodologies for health and social care. In this assignment I will compare different research methodologies for health and social care. The methodology is the overall approach you select to conduct your research – for example, whether you will use a scientist or social; science methodology. It includes the specific methods you will use and the literature search to contextualise your project within existing knowledge and understanding of the subject. Primary research involves seeking new knowledge that has not been previously published. The researcher gathers new data from participant or by examining objects, material or data in a different way from previous studies. Primary research in health and social care often involves gathering data from individuals. Surveys using questionnaires and interviews are commonly used techniques and participants may be users of services or members of the public. Secondary research is about finding out new information or understanding, a researcher needs to know what the existing information and understanding about the topic is, as published in books, journals and on the internet. Secondary research is essential for any research project. All researchers need to read widely around their subject of interest sp that they are aware not just of long-established knowledge but also of new knowledge that is emerging while they are doing their own research. Quantitative research involves numbers and measuring...

Words: 1895 - Pages: 8

Catch-22 Analysis

...The title Catch-22 means a contradictory course of action. Within the book, Catch-22 is used as a military rule. Basically, a pilot could be grounded from flying missions if the military deemed a pilot crazy. According to the rule, however, only a rational mind would be concerned for one's safety in the face of danger. Therefore, there is absolutely no way to for a pilot to become grounded, whether the pilot was sane or insane. There are a few other cases where this rule, Catch-22, is explained throughout the novel. The author sums it up best: "If he flew he was crazy and didn't have to; but if he didn't want to he was sane and had to." In Catch-22, a few of Joseph Heller's most important ideas that he is trying to convey are the absolute power of bureaucracy, the advantages people take in a free enterprise system, and the dehumanization of the pilots. The underlying idea that bureaucracy has total control over the war is evident throughout the novel. Throughout the novel we are told about the pointless missions Yossarian's squadron are forced to fly in. The commanding officers are risking the lives of their soldiers only for personal gain. The whole idea of people taking advantage of a free enterprise system is clearly portrayed throughout the novel. Throughout the novel, Milo is capitalizing on the goods that both sides need. He is taking complete advantage of the system and is making a fortune running a black market syndicate. He will even sacrifice his fellow American......

Words: 510 - Pages: 3

Ch 220c

...CH 220C ORGANIC CHEMISTRY LABORATORY Spring, 2015 Section Page 1. General Information 2 2. Safety Information 2 3. Attendance 3 Make-Up Policy 3 4. Laboratory Protocol 3 Assigned Reading 3 Pre-Lab Quizzes 3 Lab Notebook 5 Chemicals 5 Due Dates for Reports 5 5. Orientation 5 In-Lab Information 5 Library Information 5 6. Check-In 6 7. Grading Procedure 6 8. Policy on Cheating 7 9. TA Office Hours 8 10. Faculty Course CoordinatorS 8 11. Course Web Page 8 12. Hints to Minimize Frustration IN ORGANIC CHEMISTRY 8 13. Work Schedule 10 Lab Report Due Date Schedule 10 Experiments 10 14. Supplements 17 A. Extraction of Unknown 17 B. Recrystallization of Unknown Products 18 C. Methyl Benzoate 19 D. Synthesis of Luminol 20 E. Azo Violet 23 1. GENERAL INFORMATION PRE- and CO-REQUISITES Pre- and co-requisites for CH 220C listed in the Course Schedule. Important: Because the lecture and laboratory courses are co-requisites of each other, dropping one of them requires that you drop the other as well, unless the drop occurs......

Words: 8040 - Pages: 33

Proverbs 12:19-22

...PROVERBS 12:19-22 BY MAY 10, 2015 The book of Proverbs consists of many small bits and pieces of wisdom passed down from King Solomon to his people during his reign. Proverbs was written in a way that the interpretation for each little piece could be taken in a different way depending on the circumstances which has allowed these bits of wisdom to stand the test of time and still be viable today. The whole book doesn’t flow well together but should rather be read in small pieces at a time. Proverbs 12:16-22 don’t flow perfectly well together but are some of the verses I try to keep in mind throughout the day. Proverb 12:16-22 holds a main theme of dealing with the dishonest. It says: 16 The vexation of a fool is known at once, but the prudent ignores an insult. 17 Whoever speaks the truth gives honest evidence, but a false witness utters deceit. 18 There is one whose rash words are like sword thrusts, but the tongue of the wise brings healing 19 Truthful lips endure forever, but a lying tongue is but for a moment. 20 Deceit is in the heart of those who devise evil, but those who plan peace have joy. 21 No ill befalls the righteous, but the wicked are filled with trouble. 22 Lying lips are an abomination to the LORD, but those who act faithfully are his delight. The author of Proverbs was very good at using literary devices to make a mental picture for the reader. He uses terms such as “lips” instead of mouth to make his point clearer and more impactful. The rough...

Words: 1037 - Pages: 5

Chapter 22 Summary

...In A Concise Public Speaking Handbook third edition, chapter 22 explained “Informative Speaking.” An informative speech is speech which usually shares information to better a person’s understanding of the topics demonstrated. Some common goals when giving an informative speech include: speaking to improve others knowledge, talking to keep the audience’s interest, and speaking to be remembered. There are 5 different types speeches that fall under the category of informative speeches; which are speeches about objects, procedures, people, ideas, and events. Even though, these speeches have resemblances, they each have unique arrangements. When presenting a speech about a person, using details about the person’s life or stories can be of use when gathering support materials. Visual aids can also be of great use for supporting materials, when delivering a speech about objects and or procedures. The use of stories, examples, and statistics can also enhance an informative speech presentation, about events and or ideas. Other topics that were discussed in chapter 22 are how to speak clearly, the use of principle,s and techniques to teach adults. For example, some people learn better by listening, others learn better by reading as oppose to an oral presentation, meanwhile others learn better through images and words, and some people learn better by being active. In addition, different ways to maintain the interest of the audience were also discussed, that includes telling stories,......

Words: 291 - Pages: 2

Essentials of Investments, Ch 22, Intermediate Problem Set 1

...Identify and describe an appropriate set of investment objects and investment constraints for Dr. and Mrs. Mason, and prepare a comprehensive investment policy statement based on these investment objectives and constraints. Facts: - Dr. Mason will receive $1,000,000 payment on 6/7/2006 - Will receive royalties of $100,000 in first year and up to $500,000 in subsequent years - Will receive $55,000 in salary for 2006 through 2010. - Will receive $10,000 to $25,000 per year from 2006 to 2010 from speaking fees - Couple has no other savings - Retirement consists of Social Security and a small pension - Have 3 children, grown and married, the Mason’s desire to provide for education of grandchildren - Their wills divide their estate among the children and grandchildren - If the royalty payments are as projected, Mrs. Mason desires to setup a scholarship fund in name of Dr. Mason for engineering students - Priorities are: Provide for retirement, provide for education of grandchildren, setup scholarship fund Step 1 – Define investment objectives and constraints - Objectives: o Primary objective is to provide steady, sufficient retirement income to the Masons who are within 5 years of retirement. Since the Masons will receive Social Security and a small pension, this lowers the amount needed to provide for retirement o The second objective is to provide funds for education of grandchildren. o The third objective is to establish a scholarship fund for engineering...

Words: 1142 - Pages: 5

Ch 2 Ex 3

...Andrew Gunnoe MSBA 5600 Ch 2 Ex 3 8/28/12 A) Rash-Away Contribution Margin (CM) = ($2.00 - $1.40)/$2.00 = .3 CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price Absolute Increase in Unit Sales = $150,000 / $.60 (Unit Contribution) = 250,000 units Absolute Increase in Dollar Sales = $150,000 / .3 (CM) = $500,000 Red-Away Contribution Margin (CM) = ($1.00 - .25)/$1.00 = .75 CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price Absolute Increase in Unit Sales = $150,000 / $.75 (Unit Contribution) = 200,000 units Absolute Increase in Dollar Sales = $150,000 / .75 (CM) = $200,000 B) Absolute Increase in dollar sales / Advertising (Fixed Cost) = Total Sales Dollars that must be produced to cover each incremental dollar of advertising Rash-Away $500,000 / $150,000 = $3.33 An additional $1.33 is needed to support the $150,000 of advertising Red-Away $200,000 / $150,000 = $1.67 An additional $.67 is needed to support the $150,000 of advertising C) Rash-Away Contribution Margin (CM) = ($1.80 - $1.40)/$.40 = .22 CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price Absolute Increase in Unit Sales = $150,000 / $.40 (Unit Contribution) = 375,000 units Absolute Increase in Dollar Sales = $150,000 / .22 (CM) =......

Words: 256 - Pages: 2

Supernatural | Consigliate | Eps4 Trust Me (2017)