Hakeem, one of your firm’s clients, is a shareholder in Cedar Corporation. Cedar Corporation has an S corporation election in effect. During the 2021 calendar tax year, the corporation had ordinary taxable income of $200,000, and on January 15, 2021, the corporation paid dividends to shareholders in the amount of $120,000. Hakeem has asked what how much of that he needs to report on his income taxes. Your supervisor has asked you to follow up with Hakeem to get the information needed to make this determination.

Hakeem, one of your firm’s clients, is a shareholder in Cedar Corporation. Cedar Corporation has an S corporation election in effect. During the 2021 calendar tax year, the corporation had ordinary taxable income of $200,000, and on January 15, 2021, the corporation paid dividends to shareholders in the amount of $120,000. Hakeem has asked what how much of that he needs to report on his income taxes. Your supervisor has asked you to follow up with Hakeem to get the information needed to make this determination.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 41P

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