ACC 455 Week 4

Individual Week Four Problem Set

Complete the problems found in Ch. 4 & 6 of Prentice Halls Federal Taxation 2010: Corporations.

C:6-5 Discussion Question Tax consequences of distributions (Ch. 6)

C:4-29 Problem Current E&P Computation (Ch. 4)

C:4-52 Problem Comparison of Dividends and Redemptions (Ch. 4)

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft Excel, a Microsoft Word, or a PDF document.

Learning Team Week Four Tax Return

Complete the tax return found in Ch. 3 of Prentice Halls Federal Taxation 2010: Corporations with your Learning Team.

C:3-64 Tax Form /Return Preparation Problem Knoxville Musical Sales Inc. Tax Return Preparation (Ch. 3)

Read the scenario and respond to the questions.

Support your answers with calculations, as needed.

Show your work.

Submit your completed assignment as a Microsoft Excel, a Microsoft Word, or a PDF document.

Discussion Questions

Sue and Bill plan to open an accounting firm and expect to work full time in the firm. They expect to incur a small loss during their first year of operation and expect to be profitable after the first year. What are the tax law requirements for structuring the business as a partnership or an S corporation? Which would you recommend and why?

What are separately stated items on a K-1? Why is it necessary to separate these items from ordinary income?

What is the difference between a distribution and a distributive share? How do these affect the owners K-1 and individual taxes?