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Exercise 12-30(Algorithmic)(LO.5) Carlota and Dave own \(75\%\) and \(25\%\) of the stock of...

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Accounting

Exercise 12-30(Algorithmic)(LO.5)
Carlota and Dave own \(75\%\) and \(25\%\) of the stock of CD, Inc., respectively. CD, Inc. has generated a significant amount of earnings since it began business. During the current year CD distributed property to Carlota (\(\$ 150,000\) FMV; adjusted basis \(\$ 45,000\)) and Dave (\(\$ 51,500\) FMV; adjusted basis \(\$ 45,000\)). The property was all purchased by CD several years ago as investments. Carlota is in the \(37\%\) marginal tax bracket and Dave is in the \(32\%\) bracket.
If required, round your answers to nearest whole value.
How much total income tax is owed by CD, Carlotta, and Dave as a result of the distributions assuming CD is:
a. A C corporation? s
b. An S corporation? \$
c. An LLC?\$
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Under the conduit concept, the entity is viewed as merely an extension of the owners. Under the entity concept, the entity is regarded as being separate and distinct from its owners.
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