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- Shelly has 200,000 of QBI from her local jewelry store (a sole proprietorship). Shellys proprietorship paid 30,000 in W-2 wages and has 20,000 of qualified property. Shellys spouse earned 74,400 of wages as an employee, they earned 20,000 of interest income during the year, and they will be filing jointly and using the standard deduction. What is their QBI deduction for 2019?Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses. Interest income (related to business) Qualified dividend income Overall net income Ordinary income Allocated wages Unadjusted basis of qualified property Year 1 $ 175,000 (60,000) (40,000) a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years. Year 1 (15,000) (10,000) (7,500) 2,000 500 $ 45,000 Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 134,500 Jack Year 2 Year 1 Jill Year 2 b. Complete UpAHill's Form 1120-S, Schedule K, for year 1. Complete Jill's Form 1120-S Schedule K for…Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses Interest income (related to business) Qualified dividend income Overall net income Ordinary income Dividend income Interest income Allocated wages Unadjusted basis of qualified property a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years. $ $ Year 1 Year 2 $ 310,000 $ 175,000 (60,000) (85,000) (40,000) (50,000) (15,000) (20,000) (10,000) (15,000) (9,000) 2,500 1,000 $ 45,000 $ 134,500 Answer is complete but not entirely correct. Jack Jill $ (7,500) 2,000 500 44,500 $ $ 25 × $ $ 11,125 $ Year 1 Year 2…
- [The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Interest income (related to business income) Municipal bond income. Government fines Overall net income. Distributions Show Transcribed Text Ordinary Income Section 179 expense a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Municipal bond income Unadjusted basis of qualified property Allocated wages Distributions Qualified business income…Atty. Diokno owns 30% of the capital and profits of his law office. The law office reported P5,000,000 profits in 2021. The partnership is engaged in business processing outsourcing. How much will Atty. Diokno receive?For each of the following please identify if the business is a Corporation, Proprietorship, or Partnership.1) Georgette Green begins a pet care busines by invesgting $5,000. At the end of the year, she wil include the business income or lss on her personal income tax return.2)Additional paid-in-capital for the Trailblazer Compay is $8 per share3)Bronson Company presents a statement of Retained Earnings in it's financial statements at year end.4) Jean Johnoson home health care business does not have liability separate from herself.5) Grand Canyon Company's retained earnings balance is 5 million6) Jim Moore and his daughter, Jenna Moore, agree that 60% of their company's net profit will go to Jim and 40% of the net profit will go to Jenna.7) Michael Johnson and Joaquin Nunoz each invested $10,000 in their computer consulting business, and received shares of the company's stock in exhange for their investments. (Side note: Will you also explain how they received shares from a business…
- Facts: Ellie and Linda are equal owners in Otter Enterprises, a calendar year business. Ellie has a basis in Otter Enterprises of $80,000 at the beginning of the year. Linda has a basis in Otter Enterprises of $60,000 at the beginning of the year. Assume that Otter Enterprises has no debt. Otter Enterprises has $320.000 of gross income and $210.000 of operating expenses. In addition. Otter has a long-term capital gain of $15.000 and makes distributions to Ellie and Linda of $25,000 each. Required: Discuss the impact of this information on the taxable income of Otter. Ellie, and Linda if Otter is: A. A partnership. B. An S corporation. C. AC corporation. Include in your discussion (1) the amount and character of any income recognized by Ellie, Linda, and Otter (including Otter's taxable income and the amount of any tax paid by Otter) in each business entity form; and (2) Ellie and Linda's basis in Otter Enterprises at the end of the year in each business entity form. Show your work and…In the year 2024, Albert earned $100,000 per annum and contributed El and CPP in Alberta at the maximum amount. Since Albert was a full-time employee, his company matched El at 1.4% and CPP. Make a t4Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses (20,000) (4,500) Overall net income $ 97,000 Note: Leave no answer blank. Enter zero if applicable. Description Problem 09-64 Part b (Static) b. How will Firewalker allocate ordinary business income and separately stated items to its partners? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Interest income Long-term capital gain Guaranteed payments Self-employment income $ 340,000…
- Sonia, an executive of Ang Probinsyano Promotions, earned in 2018 P1,200,000 compensation income, inclusive of 13th month pay and other benefits amounting to P190,000. Aside from her employment, she owns a farm, with gross sales of P3,000,000. His cost of sales and operating expenses are P900,000 and P450,500 respectively, and with non-operating income of P200,000. Compute for the Taxable Income in her employment. _____________________________ Compute for the Taxable Income in her business. _________________________________ Compute for the Total Income Tax Payable/ Tax Due: _____________________________ Compute for the Total Income Tax Payable/ Tax Due if she signify her intention to be taxed at 8% Optional Gross Receipts Tax. _____________________________Check my work Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy) is $80,000 for 2020 and $90,000 for 2021. How much income from BV must Burgundy report for its tax year ending April 30, 2021? Burgundy receives a guaranteed payment of $100,000 plus 50% of $80,000 = $40,000 Burgundy’s total income is $140,000 How much income from BV must Violet report for her tax year ending December 31, 2021? Violet receives 50% of $90,000, BV’s taxable income after guaranteed payment to Burgundy, 50% of $90,000= $45,000Partners A and B receive a salary allowance of $35,000 and $45,000, respectively, and share the remainder equally. If the company earned $50,000 during the period, what is the effect on A’s capital?