Instruction and Requirments:
1. Please Help to finish the case project beneath.
2. For every Question Assignment even embrace the black of the desk, have to point out the answer work. Which implies should present the calculation of find out 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 beneath. 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 because the inception of Seleda in 2017. On March 31, 2021, Hector bought 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 next web page. (Present your work! Spherical your reply to the closest complete greenback)
E-book
E-book-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 beneficial properties
$10,000
Dividend obtained deduction
Different earnings (bills)
$32,000
Internet
$51,000
Extra data:
· Salida’s gathered 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 opposite 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 next for Selena?
a. Dividend
b. Lengthy-term capital achieve
c. Brief-term capital achieve
d. Not taxed
6. How a lot of the February 1, 2021 distribution is taxed as the next for Hector?
a. Dividend
b. Lengthy-term capital achieve
c. Brief-term capital achieve
d. Not taxed
7. How a lot of the November 1, 2021 distribution is taxed as the next for Selena?
a. Dividend
b. Lengthy-term capital achieve
c. Brief-term capital achieve
d. Not taxed
eight. How a lot of the November 1, 2021 distribution is taxed as the next for Isabella?
a. Dividend
b. Lengthy-term capital achieve
c. Brief-term capital achieve
d. Not taxed
9. What’s the complete of Salida’s present and gathered 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?
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Directions and stipulations:
1. Please help in finishing the case project listed beneath.
2. For every Question Assignment even embrace the black of the desk, have to point out the answer work. Which implies should present the calculation of find out 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 beneath. 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 because the inception of Seleda in 2017. On March 31, 2021, Hector bought all of his inventory to Isabella for $500 (that is Isabella’s beginning inventory foundation
