Accounting - simple task

20200315043232quiz_questions.docx

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11. Fedderman Corp. An accrual -basis calendar year repair-service corporation, began business on Monday, January 3, 20X1. Fedderman’s valid S corporation election took effect retroactively on January 3, 20X1.

Assume the following facts:

Fedderman’s 20X1 books recorded the following items:

Gross Receipt $9800

Interest Income 250

Charitable Contributions 850

Supplies 2,500

What amount of net business income should Fedderman report on its 20X1 Form 1120S, US income Tax Return for an S corporation, schedule K?

Your Answer:

12. "Karenna Fifeman, a. single taxpayer from Florida, purchased a piece of land on

Marco Island for $2,400 as an investment back in 20X1, Earlier this year on January

14, 20X6, Karenna purchased $1,100 of stock as an investment. On June 5, 20X6,

she donated the land and-stock, with fair market value of $16,400 and $2,000

respectively, to her synagogue on Marco Island, FL.

Calculate Karenna Fifeman’s charitable contributed on deduction for 20X6 assuming

Her adjustable gross income AGI was $75,000 in 20X6.

Your Answer:

13. On January 3, 20X1, Bennett and Malik each owned 100 shares of the 200 issued shares of Fedderman stock. Bennett’s basis in Fedderman shares on that date was $11,900. Bennett sold all of his Fedderman shares to Gibbs on January 31, 20X1, and Fedderman made a valid election to terminate its tax year. Bennett’s share of ordinary income from Fedderman prior to the sale was $2,700. Fedderman made a cash distribution of $1,300 to Bennett on January 30, 20X1.

What was Bennett’s basis in Fedderman shares for determining gain or loss from the sale to Gibbs.

Your Answer:

14. Please see the pdf 14.