1. Ian holds 100 shares in Big Bank Pty Ltd. The company paid a dividend of $4 per share (franked to 30%) on 1 June. Assume a corporate tax rate of 30%. What amount must Ian include in his assessable income for the year? a. $571 b. $451 c. $400 d. $51

1. Ian holds 100 shares in Big Bank Pty Ltd. The company paid a dividend of $4 per share (franked to 30%) on 1 June. Assume a corporate tax rate of 30%. What amount must Ian include in his assessable income for the year? a. $571 b. $451 c. $400 d. $51

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

See similar textbooks

Similar questions

Ian holds 100 shares in Big Bank Pty Ltd. The company paid a partially franked dividend of $4 per share (franked to 30%) on 1 June. Assume a corporate tax rate of 30%. How much tax (if any) must Ian pay on the dividend income? Assume his applicable marginal tax rate is 45% and this is the only transaction. a. $160 b. Nil c. $151 d. $57
Ian holds 100 shares in Big Bank Pty Ltd. The company paid a fully franked dividend of $4 per share on 1 June 2020. Assume a corporate tax rate of 30%. How much tax (if any) must Ian pay on the dividend income? Assume his applicable marginal tax rate is 40%. a. $160 b. $57 c. $228 d. Nil
1. Ian holds 100 shares in Big Bank Pty Ltd. The company paid a fully franked dividend of $4 per share on 1 June 2021. Assume a corporate tax rate of 30%. What amount must Ian include in his assessable income for the 2021 income year? a. $171 b. $700 c. $571 d. $400 2. Which of the following tests must a company satisfy to be a resident of Australia for tax purposes? (Select the most appropriate.) Ordinary resident test Domicile test 183 day test Superannuation test Place of incorporation Central management and control Controlling shareholders a. 4, 5, 6 ,or 7 b. 5, 6, or 7 c. Any of the above. d. 5, 6, and 7 only 3. You are provided with the following information on the accounts receivable of Havelock Limited for the year ended 30 June 2021. What is the amount included in the taxable income for Havelock Limited based on the accrual and cash methods of…
1. Andrew owns shares in Telstra. Last financial year, Andrew received a $140 dividend from Telstra with $60 of franking credits attached. What amount must Andrew include in his assessable income for the year in relation to the dividend?a. $200b. None of the above.c. $140d. $60
1. soru At the end of 2019, The Business with 20% Corporate tax rate has Expenses: TL3.150.000 and Revenues: TL3.375.000. How much is the Tax Payable if the business prepaid income tax of TL15.000 during the accounting period? a.TL30.000 b.TL15.000 c.TL45.000 d.TL60.000
An S corporation earns $4.7 per share before taxes. The corporate tax rate is 35%, the personal tax rate on dividends is 20%, and the personal tax rate on non−dividend income is 39%. What is the total amount of taxes paid if the company pays a $2 dividend? A. $2.2 B. $1.83 C. $1.47 D. $2.57
27. Gis a cash basis consultant. His balance sheet at the end of the year shows receivables of $100 and accounts payable for utilities of $30. a) What is G's basis in the receivables? b) If G transfers the receivables to a new corporation in exchange for 100% of the stock and the corporation assumes the liabilities is G taxed on the transfer?
Accounting Abco Corporation declared a $5 per share dividend on September 15. The date of record for the dividend was October 1 (the stock began selling ex-dividend on October 2). The dividend was paid on October 15. Jonas is a cash-method taxpayer. Determine if he must include the dividends in gross income under the following circumstances: Jonas bought 100 shares of Abco stock on September 10 for $40 per share. He received a $500 dividend on October 15. Jonas still owns the shares at year-end. Jonas bought 100 shares of Abco stock on August 22 for $40 per share. Jonas sold his Abco shares on October 5 for $50 per share. Jonas received the $500 dividend on October 15 (note that even though he didn't own the stock on October 15, he still received the dividend because he was the shareholder on the record date). Jonas bought 100 shares of Abco stock for $64 per share on August 10. He received the $100 dividend on October 15. Jonas still owns the shares at year- end.
You are a shareholder in a corporation. The corporation earns $5 per share before taxes. After it has paid taxes, it will distribute the rest of its earnings to you as dividend. The corporate tax rate is 30% and your personal tax rate on dividend income is 25%. What is the amount of your after-tax earnings on dividend? a. 0.875 b. 1.25 c. 1.875 d. 2.625 e. 3.50
Q1. As of the end of the current tax year, Mad Corp. has accumulated E&P of $31,000 and current E&P of $1,000. At the end of the year, Mad Corp. distributes $50,000 to its sole shareholder, Mary, whose stock basis is $10,000 (before the distribution). What amount of the distribution is treated as a dividend? Q2. As of the end of the current tax year, Mad Corp. has accumulated E&P of $31,000 and current E&P of $1,000. At the end of the year, Mad Corp. distributes $50,000 to its sole shareholder, Mary, whose stock basis is $10,000. What is Mary’s stock basis after the distribution?
WCS Inc. owns some common stock of Palmer Inc. and it just received $1,800 of dividend. If WCS Inc. is subject to a tax rate of 21%, what is the tax on this investment income? A. $148 OB. $164 OC. $189 OD. $226 OE. $282 OF. $324 G. $378 H. None of the above
Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2. Johnstone's earnings and profits at the end of year 1 were $11,560. Marcus is Johnstone's sole shareholder, and he has a stock basis of $46,000 at the end of year 1. Johnstone Corporation Income Statement December 31, Year 2 Year 2 (S Corporation) $ 174,000 ( 41,000) ( 66,000) ( 56,500) (10,000) (4,600) 12,540 Sales r evenue Cost of goods sold Salary to owners Employee wages Depreciation expense Miscellaneous expenses Interest income Overall net income $ 8,440 What is Johnstone's accumulated adjustments account at the end of year 2, and what amount of dividend income does Marcus recognize on the year 2 distribution in each of the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) a. Johnstone distributed $7,200 to Marcus in year 2. Accumulated adjustments account Dividend income