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6. (TCO F) Hoover, Inc. had gross receipts from operations of
$230,000, operating and other expenses of $310,000, and dividends
received from a 45 percent-owned domestic corporation of $120,000.
Hoover's tax position for the year is:
7. (TCO G) All of the outstanding stock of a closely held C corporation
is owned equally by David Smith and Steve Bufusno. In 2012, the
corporation generates taxable income of $30,000 from its active
business activities. In addition, it earns $20,000 of interest from
investments and incurs a $40,000 loss from a passive activity. How
much income does the C corporation report for 2012?
8. (TCO G) Mike, who is single, has $100,000 of salary, $15,000 of
income from a limited partnership, and a $30,000 passive loss from a
real estate rental activity in which he actively participates. His
modified adjusted gross income is $100,000. Of the $30,000 loss, how
much is deductible?
9. (TCO F) Pam owns a sole proprietorship, and Kevin is the sole
shareholder of a C (regular) corporation. Each business sustained a
$16,000 operating loss and a $2,500 capital loss for the year. Evaluate
how these losses will affect the taxable income of the two owners?
10. (TCO G) Briefly (1) define and (2) discuss the purpose and impact
of each of the following:
a. net operating loss
b. at-risk rules
c. tax shelter
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ACCT 553 Week 6 Assignment You Decide