Week 6 Problem Set
Learning Team E
1/30/2012
University of Phoenix
ACC 547:
James Enney
22-50
Jack and Jill are owners of UpAHill, and S-corporation. They own 25 and 75 percent, respectively.
a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above?
Description | UpaHill | Jack 25% | Jill 75% | Year 1 Income | $ 45,000.00 | | | Less: | | | | Dividends | $ 500.00 | | | Interest Income | $ 2,000.00 | | | Ordinary business income | $ 42,500.00 | $ 10,625.00 | $ 31,875.00 | Separately Stated Items: | | | | Interest Income | $ 2,000.00 | $ 500.00 | $ 1,500.00 | Dividends | $ 500.00 | $ 125.00 | $ 375.00 | Total: | $ 45,000.00 | $ 11,250.00 | $ 33,750.00 |
Description | UpaHill | Jack 25% | Jill 75% | Year 2 Income | $ 134,500.00 | | | Less: | | | | Dividends | $ 1,000.00 | | | Interest Income | $ 2,500.00 | | | Ordinary business income | $ 131,000.00 | $ 32,750.00 | $ 98,250.00 | Separately Stated Items: | | | | Interest Income | $ 2,500.00 | $ 625.00 | $ 1,875.00 | Dividends | $ 1,000.00 | $ 250.00 | $ 750.00 | Total: | $ 134,500.00 | $ 33,625.00 | $ 100,875.00 |
The amount of income for year 1 for Jack is $10,625.00 and for Jill it is $33,750.00, separate stated items are for Jack are $625.00 and for Jill it is $1,875.00.
For year 2 Jack’s income is $32,750, and Jill’s income is $98,250.00. Separate stated items for Jack is $875.00 and Jill’s is $2,625.00.
a. Complete UpaHill’s Form 1120S, Schedule K, for year
b. Complete Jill’s 1120S, Schedule K-1, for year 1.
c. Complete Jill’s 1120S Schedule K-1, for year 1.
Description | Jack | Jill | Initial Tax Basis | $ 24,000.00 | $ 56,000.00 | Ordinary business
1/30/2012
University of Phoenix
ACC 547:
James Enney
22-50
Jack and Jill are owners of UpAHill, and S-corporation. They own 25 and 75 percent, respectively.
a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above?
Description | UpaHill | Jack 25% | Jill 75% | Year 1 Income | $ 45,000.00 | | | Less: | | | | Dividends | $ 500.00 | | | Interest Income | $ 2,000.00 | | | Ordinary business income | $ 42,500.00 | $ 10,625.00 | $ 31,875.00 | Separately Stated Items: | | | | Interest Income | $ 2,000.00 | $ 500.00 | $ 1,500.00 | Dividends | $ 500.00 | $ 125.00 | $ 375.00 | Total: | $ 45,000.00 | $ 11,250.00 | $ 33,750.00 |
Description | UpaHill | Jack 25% | Jill 75% | Year 2 Income | $ 134,500.00 | | | Less: | | | | Dividends | $ 1,000.00 | | | Interest Income | $ 2,500.00 | | | Ordinary business income | $ 131,000.00 | $ 32,750.00 | $ 98,250.00 | Separately Stated Items: | | | | Interest Income | $ 2,500.00 | $ 625.00 | $ 1,875.00 | Dividends | $ 1,000.00 | $ 250.00 | $ 750.00 | Total: | $ 134,500.00 | $ 33,625.00 | $ 100,875.00 |
The amount of income for year 1 for Jack is $10,625.00 and for Jill it is $33,750.00, separate stated items are for Jack are $625.00 and for Jill it is $1,875.00.
For year 2 Jack’s income is $32,750, and Jill’s income is $98,250.00. Separate stated items for Jack is $875.00 and Jill’s is $2,625.00.
a. Complete UpaHill’s Form 1120S, Schedule K, for year
b. Complete Jill’s 1120S, Schedule K-1, for year 1.
c. Complete Jill’s 1120S Schedule K-1, for year 1.
Description | Jack | Jill | Initial Tax Basis | $ 24,000.00 | $ 56,000.00 | Ordinary business
References: Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2010). Intermediate accounting (13th ed.) Hoboken, NJ: John Wiley & Sons.