Homework answers / question archive / Assignment 1: Scenario Amanda Corporation, a calendar-year C corporation, started business on January 1, 2014

Assignment 1: Scenario Amanda Corporation, a calendar-year C corporation, started business on January 1, 2014

Accounting

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Assignment 1: Scenario Amanda Corporation, a calendar-year C corporation, started business on January 1, 2014. Amanda had taxable income for the first 3 years but incurred substantial losses for the next 2 years and is slowly recovering. 
A schedule of Amanda's taxable income (losses) for 2014 through 2020 is provided. Tax Year Taxable Income (Loss) 2014 20,000 2015 25,000 2016 60,000 2017 (115,000) 2018 (55,000) 2019 10,000 2020 30,000 
Using the information provided, prepare the net operating loss (NOL) carryback/carryforward schedule in the Excel template. 

Assignment 2: 

    S Corporation's S Status
Amy owns 40 shares of Jane Corp., an S corporation. Amy is one of 100 unrelated shareholders. She sells 10 shares of her Jane stock to her sister's solely owned C corporation.    
Mark owns 60 shares of Hello Corp., an S corporation. He is one of 100 unrelated shareholders. Mark sells 20 shares of his Hello stock to his sister's single-member LLC.    
Billy owns 50 shares of Apple Corp., an S corporation. He is one of 100 unrelated shareholders. Billy sells 15 shares of his Apple stock to a partnership in which he is a 50 percent general partner.    
Hank owns 60 shares of Sleepy Corp., an S corporation. He is one of 100 unrelated shareholders. Hank sells 15 shares of his Sleepy stock to his friend, a U.S. citizen who is currently living in Canada.    
Elle owns 50 shares of Tamco Corp., an S corporation. She is one of 100 unrelated shareholders. Elle sells 10 shares of her Tamco stock to her husband, a U.S. citizen.    
Velma owns 60 shares of Blue Corp., an S corporation. She is one of 100 unrelated shareholders. Velma sells 15 shares of her Blue stock to her former husband, a U.S. citizen.    
Gwen owns 50 shares of ABC Corp., an S corporation. She is one of 100 unrelated shareholders. Gwen sells 10 shares of her ABC stock to her 12-year-old granddaughter.    
Harry owns 40 shares of Hostel Corp., an S corporation. He is one of 100 unrelated shareholders. Henry sells 5 shares of his Hostel stock to his nephew, who is employed by Hostel Corp. but does not own any other stock in the organization.    
Edith owns 40 shares of Ohio Corp., an S corporation. She is one of 100 unrelated shareholders. Edith sells 10 shares of her Ohio stock to her aunt, who is a Canadian citizen living in Quebec.    

Assignment 3: ACC221 Lesson 2 Case Study Template            
Name:            
MEID:             
            
Part 1            
            
Using the information provided in the linked exhibits in the lesson, calculate the amount that New Agency Inc can deduct in Year 1 and Year 2 for organizational costs and start-up costs in the table below. Show work as necessary.             
            
            
        Year 1 Deduction    Year 2 Deduction
    Organizational Costs        
    Start-up Costs        
    Total        
            

ACC221 Lesson 2 Case Study Template            
Name:            
MEID:             
            
Part 2            
1. Using the information in the exhibits, calculate the amount of Sam and Jill's taxable income before the QBI deduction and enter the amounts in the spreadsheet that corresponds to the data below.            
2. For each business, identify whether the business is a qualified trade or business (QTB), a specified service trade or business (SSTB), or neither a QTB nor an SSTB in Column A on the spreadsheet.            
3. Calculate the qualified business income (QBI) deduction for each business, the total Section 199A QBI deduction, and enter the amounts in the spreadsheet. For purposes of this task, ignore any deduction for one-half of self-employment tax. Use positive whole numbers, and if the amount of the deduction is zero, enter a zero. Only fill in numbers in the blue squares.            
            
            
    A    B    C
    QTB or SSTB    QBI Deduction    Taxable Income
        for Each Business    
Taxable income before QBI deduction            
QBI Deduction for Each Business:            
Bata Partnership Ltd.            
Tango Partners            
Paul Company Inc.            
Dan Company LLC            
DNI Limited Partnership            
Blue Jay Consulting            
Total Section 199A QBI deduction            
Taxable income after QBI deduction            
 

Sam and Jill Jackson                            
Year 1 Business Net Income Summary                            
                            
    Bata    Tango Partners    Paul Co. Inc.    Dan Co. LLC    DNI Ltd. Ptrshp    Blue Jay    Total
    Ptrshp Ltd.                    Consulting    
Ownership    Jill—15%    Sam—25%    Sam—25%    Sam—25%    Sam—5%    Jill—100%    
    limited partner    general partner    shareholder    member-manager    limited partner    sole proprietor    
Entity form    Limited partnership    General partnership    S corporation    Limited liability co. (LLC)    Limited partnership    Sole proprietorship    
Type of business    Rental real estate    Smoothie shop    Thirft shop    Bike store    Restaurant    Business consulting    
Business conducted in the U.S.    Yes    Yes    Yes    Yes    No    Yes    
                            
Income From Business:                            
Share of ordinary business income    $16,000        $52,000        $38,000          $8,000        $6,000        $54,000        $174,000
Salary or guaranteed payment    $0        $0        $12,000          $12,000        $0        $0        $24,000   
                            
Other Information Provided by Business:                            
Share of W-2 wages paid by    $2,000        $20,000        $8,000          $8,000        $3,000        $24,000        $65,000
business                            
Share of unadjusted basis immediately after acquisition (UBIA) of qualified property    $73,000        $52,000        $18,000          $52,000        $12,500        $0        $207,500