Instruction and Requirments:
1. Please help to complete the case assignment under.
2. For every Question Assignment even embody the black of the desk, have to present the resolution work. Which suggests should present the calculation of how to get the quantity.
three. Please give this on Saturday, March fifth, by 10 PM with Chicago time zone.
The GAAP foundation financials of Saldia, Inc. for the 12 months ended 12/31/21 are proven under. On January 1, 2021, Salida had two shareholders. Selena, owned 75% of the inventory and Hector owned 25% of the inventory. They’ve each owned their inventory since the inception of Seleda in 2017. On March 31, 2021, Hector offered all of his inventory to Isabella for $500 (that is Isabella’s beginning inventory foundation). Salida made two distributions throughout the 12 months. They distributed $70,000 on February 1, 2021 ($52,500 to Selena and $17,500 to Hector) and $10,000 on November 1, 2021 ($7,500 to Selena and $2,500 to Isabella). On January 1, 2021, Selena’s foundation in her inventory was $2,000. Reply the questions on the following web page. (Present your work! Spherical your reply to the nearest entire greenback)
Guide
Guide-tax variations
Tax
E&P changes
Present E&P
Gross sales
$750,000
CGS
($400,000)
Gross revenue
$350,000
Salaries
($250,000)
Leisure bills
($6,000)
Depreciation expense
($75,000)
Working bills
($331,000)
Peculiar earnings
$19,000
Dividend earnings
$22,000
Capital features
$10,000
Dividend obtained deduction
Different earnings (bills)
$32,000
Internet
$51,000
Further data:
· Salida’s amassed E&P on January 1, 2021 was $45,000.
· Salida’s MACRS depreciation was $58,000 and ADS depreciation was $95,000 for the 12 months.
· Salida has a capital loss carryforward of $7,000 from 2019.
· The dividends are from a small funding in one other company. Salida owns lower than 1% of the different company.
1. What’s Salida’s taxable earnings?
2. What’s Salida’s present E&P?
three. For the February 1, 2021 distribution, how a lot is
a. Dividend
b. Non-dividend distribution
four. For the November 1, 2021 distribution, how a lot is
a. Dividend
b. Non-dividend distribution
5. How a lot of the February 1, 2021 distribution is taxed as the following for Selena?
a. Dividend
b. Lengthy-term capital acquire
c. Quick-term capital acquire
d. Not taxed
6. How a lot of the February 1, 2021 distribution is taxed as the following for Hector?
a. Dividend
b. Lengthy-term capital acquire
c. Quick-term capital acquire
d. Not taxed
7. How a lot of the November 1, 2021 distribution is taxed as the following for Selena?
a. Dividend
b. Lengthy-term capital acquire
c. Quick-term capital acquire
d. Not taxed
eight. How a lot of the November 1, 2021 distribution is taxed as the following for Isabella?
a. Dividend
b. Lengthy-term capital acquire
c. Quick-term capital acquire
d. Not taxed
9. What’s the whole of Salida’s present and amassed E&P after each distributions?
10. What’s Selena’s foundation in her inventory on January 1, 2022 assuming there have been no different transactions for the 12 months?
11. What’s Isabella’s foundation in her inventory on January 1, 2022, assuming there have been no different transactions for the 12 months?
