All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
federal taxation

Questions and Answers of Federal Taxation

Marion Mosley created the Jenny Justice Trust in 2005 with First Rank named as trustee. For 20 years, the trust is to pay out all its income semiannually to the beneficiary, Jenny Justice. At the end
Stan Meadows funded a trust in 2014 and named Merchants Bank as trustee. He paid no gift tax on the transfer. The trustee in its discretion is to pay out income, but not prin-cipal, to Stan's
Arthur Rich, a widower, is considering setting up an irrevocable trust (or trusts) with a bank as trustee and his three minor children as beneficiaries. He will fund the trust at $900,000 (or
Your employer is planning to present a program for clients that will address state income taxation of trusts and their beneficiaries. Each first year staff member has received a short assignment.
Upon audit, the IRS determines Maria's tax liabil-ity to he $40,000. Maria agrees to pay a 47,000 deficiency. Will she necessarily have to pay a sub-stantial understatement penalty? Explain.
Ed's tax liability for last year was $24,000. Ed projects that his tax for this year will be $34,000. Ed is self-employed and, thus, will have no withholding. His AGI for last year did not exceed
Anne Banks is a single, 60-year old retired teacher who does not itemize. Her only income is reported to her on the Fonn 1099-R provided by her retirement plan and the Form 1099-DIV provided by her
In 2019, Andes Corporation purchases $1.5 mil-lion of machinery (7-year property) and places it into service in its business. What are Andes' depreciation deductions for 2019 and 2020 in each of the
Woburn Corporation uses the calendar year as its tax year. Woburn purchases and places into service $1.7 million of depreciable property during 2019: You are working in Woburn's tax department and
Turner Corporation uses the calendar year as its tax year. It purchases and places into service $1.97 million of property during 2019 to use in its business: What is Turner's total depreciation
Tampa Corporation sold the following assets in 2019: a. What is the depreciation deduction for each asset in 2019? b. Compute the gain or loss on each asset sold. Automobile Equipment Building
Stan Bushart works as a customer representative for a large corporation. Stan's job entails traveling to meet with customers, and he uses his personal car 100% for business use. In 2019, Stan must
On March 10, 2016, Elizabeth, a college professor, purchased a house for $300,000. She did not move into the house until August 8, 2016. On August 1, 2017, she accepted a po-sition as a visiting
Not:recaptured Net Sec. 1231 Losses. Consider the following summary of Sec. 1231 gains and losses recognized by Janet during the period 2014-2019. Janet had no nonrecaptured Sec. 1231 losses at the
Corporation incurs a $100,000 NOL in 2019. In 2020, the corporation reports the following items:Gross profit from operations$200,000Operating expenses other than interest expense120,000Business
Brad and Valerie decided to adopt a child and contacted an adoption agency in August 2018. After extensive interviews and other requirements (such as financial status, etc.), Brad and Valerie were
Harold J. Milton (SSN1000-22-1111) is 66 years old and unmarried, filing single with no dependents. He had the following income and deductions for 2018: Complete Milton's 2018 Form 1040, Schedule
Assume the same facts as in Problem 22, except that the trust instrument allocates the capital gain to income.a. How much income is each beneficiary entitled to receive?b. What is the trust’s
The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust’s annual accounting income in shares
Sanchez incurred the following items.Business income, exclusive of the following items ................................................... $80,000Tax-exempt interest income
The Sterling Trust owns a business and generated $100,000 in depreciation deductions for the tax year. Mona is one of the income beneficiaries of the entity.a. Given the following information,
Using Exhibit 28.4 as a guide, describe the computation of a fiduciary entity’s accounting income, taxable income, and distributable net income.Exhibit 28.4 EXHIBIT 28.4 Accounting Income,
Before her death, Lucy entered into the following transactions.a. Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account, and no interest or
Before her death, Lucy entered into the following transactions.a. Lucy borrowed $600,000 from her brother, Irwin, so that Lucy could start a business. The loan was on open account, and no interest or
Grace Lang was employed as a waitress at the Pancake House in Grand Bay, Alabama. While working the morning shift on March 7, 2009, one of Grace’s customers left her a Florida lottery ticket as a
Under Rowena’s will, Mandy (Rowena’s sister) inherits her property. One year later, Mandy dies. Based on the following independent assumptions, what is Mandy’s credit for the tax on prior
Assume the same facts as in Problem 42, except that Gordon and Fawn are husband and wife (not brother and sister).a. What are the gift tax consequences in 2012?b. What are the estate tax consequences
Assume the same facts as in Problem 38 with the following modifications. What amount is included in Alicia’s gross estate?• Mitch is killed in a rock slide while mountain climbing in November,
In each of the following independent situations, indicate whether the alternate valuation date can be elected. Explain why or why not. Value of Gross Estate Estate Tax Liability Date of Six Months
In 2001, Mason buys real estate for $1.5 million and lists ownership as follows: “Mason and Dana, joint tenants with the right of survivorship.” Mason dies first, when the real estate is valued
During the year, Rajeev makes the following transfers: • $1,000 to his mayor’s reelection campaign.• $21,000 to his aunt, Ava, to reimburse her for what she paid the hospital for her
Gus (age 84) and Belle (age 18) are married early in the year. Late in the same year, Belle confronts Gus about his failure to transfer to her the considerable amount of property he previously
Regarding the formula for the Federal estate tax (see Concept Summary 27.2), comment on the following.a. The gross estate includes only property interests owned by the decedent at the time of
The Eggers Corporation filed an amended Form 1120, claiming an additional $400,000 deduction for payments to a contractor for a prior tax year. The amended return was based on the entity’s
Continue with the facts of Problem 44. What are the Federal income tax withholding requirements with respect to Martinho’s sale? Who pays the withheld amount to the U.S. Treasury?Problem
Partin, Inc., a foreign subsidiary of Jones, Inc., a U.S. corporation, reports pretax income of 200,000 euros for the current year. Partin accrues 60,000 euros in foreign taxes on this income. The
Honk, Inc., a U.S. corporation, purchases weight-lifting equipment for resale from HiDisu, a Japanese corporation, for 60 million yen. On the date of purchase, 105 yen is equal to $1 U.S. (¥105:$1).
Enders, Inc., a domestic corporation that invests in foreign securities, reports total taxable income for the tax year of $290,000, consisting of $208,800 in U.S.-source business profits and $81,200
Identify three states considered to be in the same economic region as your own. For each of the three states, answer the following questions.Answers to most can be found at www.taxadmin.org.• What
For your state and one of its neighbors, find the following income tax rules. Place your data in a chart, and e-mail your findings to your instructor.a. To what extent does each state follow the
State E applies a throwback rule to sales, while State F does not. State G has not adopted an income tax to date. Clay Corporation, headquartered in E, reported the following sales for the year. All
Use Exhibit 24.1 to provide the required information for Warbler Corporation, whose Federal taxable income totals $10 million. Warbler apportions 70% of its manufacturing income to State C. Warbler
What is the due date for an exempt organization’s annual information return?a. The 15th day of the fifth month after the organization’s year-end.b. The 15th day of the fourth month after the
Which of the following exempt organizations are required to file an annual information return if gross receipts exceed $50,000 in a year?I. A charityII. A labor unionIII. A churcha. I, II, and IIIb.
The International Association of Accountants (IAA), a labor union, made a one-time donation to a political candidate who is also a member of the organization. In addition, the IAA publicly endorsed
The International Association of Accountants (IAA), a labor union, made a one-time donation to a political candidate who is also a member of the organization. In addition, the IAA publicly endorsed
Happy House, Inc., an exempt organization, records $340,000 of gross unrelated business income (UBI) in its first year of operations. The following expenses were incurred in producing the UBI.Expense
As of January 1, Kirk owned all 300 shares of Cork, Inc., a calendar year S corporation. On September 1, (243 days after January 1), Kirk sold 50 shares each to Steve and Moe and kept the remaining
Pankee, Inc., was formed as a C corporation and made an S election five years ago. Which of the following statements correctly describes the taxability of Pankee’s distributions to its
Shareholders of Rayle Co., a calendar year corporation whose S status was terminated during 2017, are looking to reapply for the S status as soon as possible. What is the earliest year a new S
Rocket Co., an S corporation, pays single-coverage health insurance premiums of $17,000 per year. Philip is a 1% shareholder-employee in Rocket. On Philip’s behalf, Rocket pays Philip’s family
Which of the following would cause a revocation of S status for an existing S corporation?I. A partnership becomes a shareholder of an S corporationII. An S corporation becomes a partner in a
Monie, an individual taxpayer, owns 50% of Monie & Co, an S corporation. At the beginning of the tax year, Monie’s basis in Monie & Co stock was $55,000. During the year, Monie & Co
Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis of $10,000. This is the first year of Markee’s operations. Additional items reported by Markee during
Mindy, an individual, owns 100% of Markee, an S corporation, and she has an initial stock basis of $10,000. This is the first year of Markee’s operations. Additional items reported by Markee during
Sean Moon is president, secretary, treasurer, sole director, and sole shareholder of Streetz, an S corporation real estate company. He manages all aspects of the company’s operations, and he is the
One of your clients is considering electing S status. Texas, Inc., is a sixyear- old company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2017, Texas holds a
Caleb Samford calls you and says that his two-person S corporation was involuntarily terminated in February 2016. He asks you if they can make a new S election now, in November 2017. Draft a memo for
Which of the following distribution scenarios shows the proper order in which these assets should be considered in a partnership distribution having a total inside basis exceeding the outside basis
Prairee partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of January 1, 2017. Prairee’s 2017 net business income was $152,000.
Prairee partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of January 1, 2017. Prairee’s 2017 net business income was $152,000.
Prairee partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of January 1, 2017. Prairee’s 2017 net business income was $152,000.
On a partnership tax return, all of the following are subject to special limitations and must be separately passed through to the partners, except:a. Charitable contributionsb. Salaries to
On March 17, 2017, Packer became a partner in Cats & Dogs Co., an already formed partnership. Packer does not have property to contribute and thus contributes services in exchange for his 5%
A guaranteed payment for a partner’s services that is payable to the partner without regard to partnership profits will have which of the following effect(s)?I. The guaranteed payment increases the
Guaranteed payments made by a partnership to partners for services rendered to the partnership include which of the following?a. Sales of partners’ assets to the partnership at guaranteed amounts
Which of the following statements is (are) correct about the partnership’s holding period of property acquired from a partner as a contribution to capital?I. The holding period begins on the date
Paul and Anna plan to form the PA LLC by the end of the current year to produce and sell specialty athletic apparel. Paul and Anna will both serve as member-managers of the LLC and will be active in
Assume the same facts as in Problem 53. On the first day of the third tax year, the partnership sold the equipment for $150,000. The gain on the sale is allocated equally to the partners. The
Assume the same facts as in Problem 51. Assume that Burgundy, Inc.’s annual guaranteed payment is increased to $120,000 starting on January 1, 2018, and the LLC’s taxable income for 2017 and 2018
Assume the same facts as in Problem 48, except that Suz-Anna was formed as an LLC instead of a general partnership.a. How would Suz-Anna’s ending liabilities be treated?b. How would Suzy’s basis
Assume the same facts as in Problem 48, and assume that Suz-Anna prepares the capital account rollforward on the partners’ Schedules K–1 on a tax basis.a. What is Suzy’s capital account balance
Let’s look at both the facts and the spreadsheet from Problem 46. Consider the results if the partnership’s revenues were $100,000 instead of $150,000.a. What happens if you update the revenues
Assume the same facts as in Problem 42. Prepare Amy’s tax-basis capital account rollforward from the beginning to the end of the tax year. How does her capital account differ from her basis as
Assume the same facts as in Problem 42. What income, gains, losses, and deductions does Amy report on her income tax return? Based on the information provided, what other calculations is she required
Assume the same facts as in Problem 40, with the following exceptions:• Reece purchased the land five years ago for $120,000. Its fair market value was $90,000 when it was contributed to the
Browne and Red, both C corporations, formed the BR Partnership on January 1, 2015. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BR’s gross receipts were
Continue with the facts presented in Problem 32. At the end of the first year, the LLC distributes $100,000 of cash to Sam. No distribution is made to Drew.a. Under general tax rules, how would the
Continue with the facts presented in Problem 32.a. Construct a balance sheet for SD LLC assuming that Drew’s services are completed immediately after forming SD. The balance sheet should reflect
Assume the same facts as in Problem 30, except that Mike sells his land to a third party for $100,000 and then contributes that cash to the partnership in addition to the original $40,000
Heather sells land (adjusted basis, $75,000; fair market value, $95,000) to a partnership in which she controls an 80% capital interest. The partnership pays her only $50,000 for the land.a. How much
Find a current article (not more than two years old) discussing tax inversions and the Regulations created to close this loophole. Send a one-page summary of the article to your professor.
Shelly Zumaya (2220 East Hennepin Avenue, Minneapolis, MN 55413) is the president and sole shareholder of Kiwi Corporation (stock basis of $400,000). Incorporated in 2006, Kiwi Corporation’s sole
Assume in Problem 28 that the land had a fair market value of $630,000 on the date of its transfer to the corporation. On the date of the liquidation, the land’s fair market value has decreased to
How is the four-column template in Concept Summary 20.3 used to determine a shareholder’s basis in the stock received in a corporate restructuring?
Close Corp. distributed cash and a parcel of land in a nonliquidating distribution to its sole shareholder. The following facts apply to this distribution:Item
Calvin owns 40% of the outstanding shares of Copernicus Corp., which has accumulated earnings and profits of $100,000 as of December 31, year 1. The outstanding shares not owned by Calvin are owned
How does a shareholder treat the gain on a redemption of stock that qualifies as a redemption to pay death taxes under § 303?a. As a tax-free transactionb. Partly as capital gain and partly as a
Compendium Corp. distributed cash and personal property to its sole shareholder. Considering the following facts, what is the amount of gain that would be recognized by Compendium as the result of
On January 1 of the current year, Quail Corp., an accrual-basis, calendar-year C corporation, had accumulated earnings and profits (E & P) of $20,000. On December 31 of the current year, Quail
At the beginning of the year, Crispin, a C corporation, had a deficit of $35,000 in accumulated earnings and profits (E & P). For the current year, Crispin reported E & P of $12,000. Crispin
As of December 31, 2017, Caledonia Corp. has taxable income of $150,000, which includes a $20,000 accelerated depreciation deduction; had straight-line depreciation been used, the deduction would
As of December 31, 2017, Hardy Corp. has net income per books of $120,000, which includes straight-line depreciation expense of $5,000. Hardy Corp. claimed accelerated depreciation of $15,000 for tax
As of December 31, 2017, Eliot Corp. has net income per books of $100,000, which includes municipal bond interest of $4,000, a deduction for business meals of $5,000, a deduction for a net capital
Candy Corp. is a C Corporation that began operations in year 1. Candy Corp.’s year 1 through year 3 taxable earnings and profits (E & P) are as follows:Year
Stock buy-back (redemption) programs are a frequent occurrence among publicly traded corporations. Using the internet as your sole research source, find at least six publicly traded corporations that
In July 2013, Windstream Corp. (Nasdaq: WIN), a Fortune 500 and S&P 500 company, made an announcement regarding the taxation of a recent distribution. It also made a projection regarding the
Your firm has a new individual client, Carla Navarro, who has been assigned to you for preparation of the current year’s tax return. Upon review of Carla’s tax returns from prior years, you
Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2017, its second year of operation.Taxable income
Assume the same facts as in Question 5, except that noncash property is distributed. What factors must be considered when determining how the distribution is treated for tax purposes by Orange

Showing 1300 - 1400 of 3271

First
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved