Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume the following year 2 income statement for j

Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation...

90.2K

Verified Solution

Question

Accounting

image

imageimageimageimage

Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in year 1 and elected to be taxed as an S corporation beginning in year 2 . Johnstone's earnings and profits at the end of year 1 were $13,120. Marcus is Johnstone's sole shareholder, and he has a stock basis of $52,000 at the end of year 1. What is Johnstone's accumulated adjustments account at the end of year 2 , and what amount of dividend Income does Marcus recognize on the year 2 distribution in each of the following alternatlve scenarlos? Note: Leave no answer blank. Enter zero If appllcable. a. Johnstone distributed $8,400 to Marcus in year 2 b. Johnstone distributed $12,400 to Marcus in year 2 c. Johnstone distributed $18,400 to Marcus in year 2 . d. Johnstone distrlbuted $28,400 to Marcus in year 2

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

A block of mass m is allowed to slide down a fixed smooth inclined plane...

Calculus
1.2K views

S 2 4 4 4 4 3 Real axis Part A Identify the points in...

Algebra
1.2K views

11 Admission tickets to the Braden River Little League all star game cost 4 00...

Algebra
1.2K views

For each value of u determine whether it is a solution to 8 5 72...

Algebra
1.2K views

10 points Solve the following system of equations 2y 6x 20 x 4y 40 0

Accounting
1.2K views

CHAPTER 16 (1.) A company reports pretax accounting income of $16 million, but because of...

Accounting
1.2K views

Please provide me the answer as soon as possible Gamms, inc...

Accounting
1.2K views

Cyrus deposits a fixed monthly amount into an annuity account for his child's college fund....

Accounting
1.2K views

Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37,000...

Accounting
1.2K views

Exercise 4-14(Algo) Computing the current ratio LO A1 Use the information in the following...

Accounting
1.2K views

Select from the option list provided the assertion that is most likely tested by each...

Finance
1.2K views

Multiple Choice. The purchase of real assets is also referred to as the: A. Capital...