Complete Question:
Crane and Loon Corporations, two unrelated calendar year C corporations, have the following transactions for the current year.
Crane,Loon
Gross Income: 180k, 300k
Expenses from operations: 100k, 230k
Div received: 100k, 230k
Compute the DRD for both companies
Solution:
DRD is a federal tax deduction for certain companies earning distributions from related entities in the United States. The amount of the dividend to be withheld from income tax by a corporation is related to how much it is owned in the business with the dividend.
Crane: 180k-255k+100k =25k-(100k*.5) = -25k so take 50k
Loon: 300k-310k+230k =220k-115.5k = 104.5+so good.
220.5k= 110k or 115k
Take lesser 110k
Crane DRD = 50k
Loon DRD = 110k
Answer:
C. Practicing effective corporate governance
Explanation:
Accounting scandals refer to the scandals of the business that occurs from the change in the financial statements that to be done in a deliberate manner also the disclosing information is misled. It involves an organization as a whole.
In order to prevent the accounting scandals and the global financial crisis it could practicing corporate governance in an effective manner
Hence, the correct option is C.
Answer: $27,000
Explanation:
Even though for GAAP reasons, revenue is to be recognized only when earned as per the Accrual principle of accounting, this is not so for the calculation of taxable income.
Taxable income is to be calculated on cash basis which means that taxes are to be paid on revenue when the revenue is received in cash and not when it is earned.
As Ral Corp. received the money in 2020, they are to include the entire amount of $27,000 in their 2020 taxable income for rent revenue.
