Respuesta :
Answer:
a. Brandi's tax liability on the distribution is $23,250
b. Yuen's tax liability on the distribution is $30,000
Explanation:
Given
Amount = $200,000
Tax bracket = 33%
Redeem Stock = $45,000 basis
a.
First, we calculate the taxable dividend.
Taxable dividend is calculated by subtracting the redeemed stock from the total amount.
Taxable dividend = Amount - Redeemed Stock
Taxable dividend = $200,000 - $45,000
Taxable dividend = $155,000
Brandi's tax liability on the distribution is calculated as: Taxable dividend * tax rate
Tax liability = $155,000 * 15%
Tax liability = $23,250
Hence, Brandi's tax liability on the distribution is $23,250
b. With an assumption that the distribution to Yuen is a nonqualified stock redemption.
Yuen's tax liability on the distribution is calculated as follows;
Tax liability = Amount * Tax rate
Tax liability = $200,000 * 15%
Tax liability = $30,000
Hence, Yuen's tax liability on the distribution is $30,000
Answer:
a. Brandi's tax liability on the
distribution = $23,250
b. Yuen's tax liability on the distribution = $30,000
Explanation:
A. To determine Brandi's tax liability on the distribution we first find taxable divided which we have as follows
Taxable dividend = actual dividend released – adjusted stock value
Actual dividend released = $200,00
Adjusted stock value = $45,000
Total divided = 200,000 – 45,000
= $155,000
Tax = Taxable dividend * tax rate
= 155,000×15%
=$ 23,250
B. Let's Determine Yuen's tax liability, which is
Tax = taxable dividend × tax rate
= 200,000 ×15%
= $30,000
