(SOLVED) Mustard Corporation a C corporation owns 15 of

the stock
Mustard Corporation (a C corporation) owns 15% of the stock of Burgundy Corporation (a C
corporation), which pays an annual dividend to its shareholders. Mustard is considering the
purchase of additional shares of Burgundy stock. Would this stock purchase affect the amount
of dividends received deduction that Mustard can claim? […]

Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the
stock of Emu Corporation (an S corporation). In the current year, each corporation has
operating income of $120,000 and tax-exempt interest income of $8,000. Neither corporation
pays any dividends during the year. Discuss how […]

Marmot Corporation pays a dividend of $100,000 in the current year. Otter Corporation, which is
in the 25% marginal bracket, owns 15% of Marmot’s stock. Gerald, an individual taxpayer in the
25% marginal bracket, also owns 15% of Marmot’s stock. Compare and contrast the treatment
of the dividend by Otter […]

The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end
meeting on December 30, 2015. One topic on the board’s agenda is the approval of a $25,000
gift to a qualified charitable organization. Orange has a $20,000 charitable contribution
carryover to 2015 from a prior […]

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John (a sole proprietor) and Eagle Corporation (a C corporation) each recognize a long-term
capital gain of $10,000 and a short-term capital loss of $18,000 on the sale of capital assets.
Neither taxpayer had any other property transactions during the year. Describe the tax
consequences of these gains and losses […]

In the current year, Jeanette, an individual in the 25% marginal tax bracket, recognized a
$20,000 long-term capital gain. Also in the current year, Parrot Corporation, a C corporation in
the 25% marginal tax bracket, recognized a $20,000 long-term capital gain. Neither taxpayer
had any other property transactions in the […]

Lupe, a cash basis taxpayer, owns 55% of the stock of Jasper Corporation, a calendar year
accrual basis C corporation. On December 31, 2015, Jasper accrues a performance bonus of
$100,000 to Lupe that it pays to him on January 15, 2016. In which year can Jasper deduct the
bonus? […]

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