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

LO.4 Jake (age 72) and Jessica (age 28) were recently married. To avoid any transfer taxes, Jake has promised to leave Jessica all of his wealth when he dies. Is Jake under some misconception about
LO.4 Distinguish between an estate tax and an inheritance tax.a. Do some states impose both? Neither?b. Which, if either, does the Federal government impose?
LO.4 During a social event, Muriel and Earl are discussing the home computer each recently purchased. Although the computers are identical makes and models, Muriel is surprised to learn that she paid
LO.4 Velma lives in Wilson County, which is adjacent to Grimes County. Although the retail stores in both counties are comparable, Velma drives an extra 10 miles to do all of her shopping in Grimes
LO.4 Eileen, a resident of Wyoming, goes to Montana to purchase her new automobile.She does this because Wyoming imposes a sales tax while Montana does not. Has Eileen successfully avoided the
LO.4 What is the difference between an excise tax and a general sales tax?a. Do all states impose a general sales tax?b. Does the Federal government impose a general sales tax?
LO.4 After his first business trip to a major city, Herman is alarmed when he reviews his credit card receipts. Both the hotel bill and the car rental charge are in excess of the price he was quoted.
LO.4 Many excise taxes are imposed by both the Federal and state governments. Give several examples of this practice.
LO.4 Franklin County is in dire financial straits and is considering a number of sources for additional revenue. Evaluate the following possibilities in terms of anticipated taxpayer compliance:a. A
LO.4 The Williams family made significant improvements to their personal residence and then converted it to a bed-and-breakfast facility. They were surprised when the property taxes on the residence
LO.4 Crane College is considering purchasing an adjoining apartment building and converting it to a dormitory for out-of-town students. The city and county authorities are opposed to the idea. Why?
LO.4 The Adams Independent School District wants to sell a parcel of unimproved land that it does not need. Its three best offers are as follows: from the state’s Department of Public Safety (DPS),
LO.4 Several years ago Ethan purchased the former parsonage of St. James Church to use as a personal residence. To date, Ethan has not received any ad valorem property tax bills from either the city
LO.3 Distinguish between taxes that are proportional and those that are progressive.
LO.3 Using Adam Smith’s canon on convenience, evaluate the Federal income tax.
LO.2 How does the pay-as-you-go procedure apply to wage earners? To persons who have income from sources other than wages?
LO.2 World War II converted the Federal income tax into a mass tax. Explain.
LO.2 The Sixteenth Amendment to the U.S. Constitution was passed to overturn a Supreme Court decision that had invalidated the Federal income tax. Do you agree?Why or why not?
LO.1 Marvin is the executor and sole heir of his aunt’s estate. The estate includes her furnished home, which Marvin is considering converting to rental property to generate additional cash flow.
LO.1 In the following independent situations, is the tax position of the taxpayer likely to change? Explain why or why not.a. John used to make casual purchases and sales of real estate as an
LO.9 Aiden has a 30% capital interest in the Oro Partnership and is entitled to a yearly guaranteed payment of $40,000. As of January 1, 2012, Aiden’s basis in the partnership interest is $80,000.
LO.9 Guy, Alma, and Kara form the Ivory Partnership. In exchange for a 30% capital interest, Guy transfers property (basis of $200,000; fair market value of $400,000) subject to a liability of
LO.8 Ida owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2012, is $120,000. Mockingbird has an operating loss of$500,000 in 2012 and an
LO.8, 10 Jim Olsen owns all of the stock in Drake, a calendar year S corporation. For calendar year 2012, Drake anticipates an operating loss of $160,000 and could, if deemed worthwhile, sell a stock
LO.8 Assume the same facts as in Problem 54.Kirby Turner is a 20% shareholder in Thrasher Corporation. She is aware of the tax consequences of the various items listed on the Schedule K–1 (Form
LO.8 During 2012, Thrasher (a calendar year, accrual basis S corporation) has the following transactions:Sales $1,500,000 Cost of goods sold 900,000 Long-term capital gain 10,000 Short-term capital
LO.7 Ten years ago, Green Corporation purchased all of the stock of Amber Corporation for $800,000. In the current year, Amber has a basis in its assets of $900,000 and a fair market value of
LO.7 In the current year, Carmine Corporation is liquidated under the general rules of § 331 and § 336.It has cash of $200,000 and undeveloped land (basis of $100,000 and fair market value of
LO.6 Justin is one of the shareholders in Flicker, a closely held family C corporation.When his basis in the stock is $120,000, Justin receives a distribution of $150,000 from Flicker. Assume that
LO.1 Discuss whether property that is classified as personal use is subject to cost recovery.
LO.6, 10 The stock of Emerald Corporation is held equally by Barney and Faye. The shareholders would like to receive, as a dividend, value of $800,000 each. The corporation has the following assets
LO.1 If a taxpayer does not take any cost recovery on an asset during the year, what will be the impact on the basis of the asset?
LO.6 Lily is the sole shareholder of Crimson Corporation (a C corporation). At a time when Crimson has a deficit in accumulated E & P of $100,000 and current E & P of$60,000, it distributes a cash
LO.5 Elton, Neil, Courtney, and Zelma form Ecru Corporation with the following investments:Basis to Transferor Fair Market Value Number of Shares Issued From Elton—cash $ 200,000 $ 200,000 200 From
LO.4 Puce, a calendar year C corporation, had the following Schedule M–1 transactions on its Form 1120 for 2012:Taxable income $100,000 Federal income tax 22,250 Excess capital losses over capital
LO.4 In each of the following independent situations, determine the C corporation’s Federal income tax liability for calendar year 2012.Corporation Taxable Income Sparrow $ 49,000*Warbler
LO.3 Puffin Corporation was formed on July 1, 2012, and incurred qualifying organizational expenditures. It uses a calendar year and wants to accelerate any deductions that are available. Based on
LO.3 Determine the dividends received deduction for each of the following independent situations.Assume that the percentage of stock owned in the corporation paying the dividend is 30% for Green
LO.1 Discuss whether land improvements are eligible for cost recovery.
LO.2 Tern Corporation manufactures a motor scooter at a cost of $5,000 and sells it to Snipe Corporation for $7,000. Snipe spends $2,000 marketing the scooter and sells it to the general public for
LO.2 For each of the following independent situations, determine the domestic production activities deduction (DPAD) for 2012.Corporation Qualified Production Activities Income Taxable Income(without
LO.2 Auburn Company manufactures and sells furnishings for hospitals (e.g., special needs bathroom fixtures). In the current year, it donates some of its inventory to a newly constructed hospice. The
LO.2 During 2012, Siskin Corporation (a C corporation) had the following transactions:Income from operations $500,000 Expenses from operations 425,000 Dividends from domestic corporations (less than
LO.2 On December 7, 2012, Kestrel Company (a calendar year taxpayer) authorizes a cash donation of $40,000 to the Memphis Public Library. The pledge is carried out as follows: $10,000 on December 14,
LO.2 Taupe, a calendar year taxpayer, has the following capital transactions for 2012:long-term capital loss of $4,000 and a short-term capital loss of $4,000. How are these items handled for tax
LO.2, 8 Citron, a calendar year taxpayer, began business in January 2011. It had a long-term capital gain of $5,000 in 2011 and a long-term capital loss of $10,000 in 2012.For both years, Citron had
LO.2 Garnet has the following capital asset transactions during 2012:Long-term capital gain $8,000 Short-term capital gain 3,000 Further, Garnet has an excess capital loss carryforward of $6,000 from
LO.2, 3, 4 Using the legend provided below, classify each statement.Legend I = Applies only to the income taxation of individuals C = Applies only to the income taxation of C corporations B = Applies
LO.9 What are guaranteed payments? When might such payments be used?
LO.9 Carlos and his parents are equal partners in the Puce Partnership. Carlos sells property to Puce for a realized loss. Puce later sells the property to a third party (i.e., an outsider) for a
LO.2 Discuss whether the date an asset is placed in service is important in determining whether the mid-quarter convention applies for personalty.
LO.9 Blaine, Cassie, and Kirstin are equal partners in the Maize Partnership. During the year, Maize has qualified dividends, charitable contributions, and a domestic production activities deduction.
LO.9 Indicate whether each of the following will increase (+), decrease (−), or have no effect (NE) on a partner’s basis in a partnership interest:a. Operating loss of the partnership.b. Capital
LO.2 Discuss the actual recovery period for the cost of an asset if the half-year convention applies.
LO.8 Tracy and Marvin are equal shareholders in Rojo Company, a calendar year S corporation. Each paid the same amount when they originally acquired the stock several years ago. In the current year,
LO.8 Alexis, Brayden, Brooke, and Charles are equal shareholders in Azul Corporation(a calendar year S corporation). During the year, Azul has a short-term capital loss, qualified dividend income,
LO.8 A calendar year corporation has an election under Subchapter S. What will be the effect, if any, of the following events on its S status?a. The board of directors of the corporation revokes its
LO.7 Angie is the sole shareholder of Rust Corporation (a C corporation). If the corporation is liquidated, what are the tax effects on:a. Rust Corporation?b. Angie?
LO.2 Discuss the computation of cost recovery in the year an asset is placed in service when the mid-quarter convention is being used.
LO.6 The stock of Grouse Corporation (a C corporation) is owned equally by a sister and two brothers: Mary, Rex, and Orson. During the year, the following transactions occur:a. Mary sells property to
LO.6 When a corporation distributes property as a dividend, what are the tax effects on the corporation and its shareholders under the following assumptions?a. The property has declined in value.b.
LO.6 A C corporation makes a cash distribution to its shareholders. Describe the tax effect on the shareholders if the distribution is:a. A qualified dividend.b. A return of capital that does not
LO.5 Cynthia and some associates want to form a corporation to develop and operate an industrial park. Cynthia is to contribute the land, which has significantly appreciated in value. She would like
LO.2 Discuss what property qualifies for additional first-year depreciation.
LO.5 Small, closely held corporations are often formed with a minimum of capital investment. Key assets used in the business are then leased to the corporation by the shareholders. What are the
LO.2 Discuss the computation of cost recovery in the year of sale of an asset when the mid-quarter convention is being used.
LO.4 Beige Corporation has lower taxable income than Drab Corporation. Yet Beige’s marginal income tax rate is 39%, while Drab’s marginal rate is 35%. Explain how this variance can occur.
LO.4 Mallard Corporation was formed in December 2011 and plans to use the cash basis of accounting. Mallard incurred one-half of its organizational expenses in December 2011 and one-half in January
LO.3 Two small C corporations have invested in the stock of IBM Corporation.Although they own the same number and type of shares, one corporation is able to claim a larger dividends received
LO.3 The dividends received deduction does not always completely eliminate the effect of taxation of dividend income at the corporate shareholder level. Explain this statement.
LO.2 Discuss the mid-month convention.
LO.2 Kite, a calendar year C corporation, incurs a net operating loss for 2012. What factors should be considered before Kite Corporation chooses to carry back the loss?
LO.2 Robert purchased and placed in service $100,000 of seven-year class assets on August 10 of the current year. He also purchased and placed in service $500,000 of five-year class assets on
LO.2 In connection with the domestic production activities deduction, comment on the following:a. In applying the limitation on the deduction, the difference between individual and C corporation
LO.2 If a C corporation donates ordinary income property to a qualified charity, the measure of the amount of the deduction is the adjusted basis of the property. Do you agree with this statement?
LO.2 Colorado Corporation, a calendar year C corporation, has made charitable contributions during 2012, and it has a charitable contribution carryover from 2011. After applying the 10% of taxable
LO.2 In late December 2012, Gray Corporation (a calendar year C corporation)pledges a $50,000 donation to a local relief agency formed to fight AIDS in Africa.Although Gray’s board of directors
LO.2, 8, 9 The taxpayer has excess capital losses (both short-term and long-term) for the current year. Discuss the income tax ramifications of the losses if the taxpayer is:a. An individual.b. A C
LO.2 Discuss the general cost recovery method and period for new farm machinery placed in service in 2012.
LO.2 A C corporation invests and trades in real estate. During the year, it sells a tract of land for a substantial loss. Because the land was held both for resale and as an investment, the loss
LO.2 Brown purchased a stock investment on March 8, 2011. The investment has substantially appreciated in value, and Brown plans to sell and recognize the gain. The sale date would be either March 8,
LO.2, 3 Some tax attributes (e.g., income, deductions, and credits) are available to individuals only, corporations only, or both. In this connection, comment on the following:a. Foreign tax
LO.2 Discuss the applicable convention for farming assets if an election is made not to have the uniform capitalization rules apply.
LO.2, 3 Contrast the income taxation of individuals and C corporations as to each of the following:a. Alternative minimum tax.b. Dividend income.c. Use of the cash method of accounting.d. Accounting
LO.1 The Owen brothers have obtained financing to start a new venture. The business will be high-risk as to potential liability and is expected to incur losses before becoming profitable. What type
LO.2 Jim owns a very large ranch. A large part of his business is the production and raising of breeding cattle. Jim understands that under MACRS, he is entitled to cost recovery on breeding cattle.
LO.1 For calendar year 2009, Mario filed a Form 8332 and elected to treat his sole proprietorship as a C corporation. For 2012, he wants to revert back to a sole proprietorship for tax purposes.a.
LO.1 Presuming that no election is made under the check-the-box Regulations, how will the following businesses be treated for Federal income tax purposes?a. A one-person entity not incorporated under
LO.1 What purpose is served by the check-the-box Regulations?
LO.1, 10 Why are limited liability companies advantageous?
LO.1 Under certain circumstances, an entity that qualifies under state law as a corporation may have its corporate status disregarded for tax purposes by the IRS.a. Why might the IRS try to disregard
LO.1 What is the role of state law in determining whether an entity will be classified as a corporation for Federal income tax purposes?
LO.10 Zariat has the retirement assets listed below. She plans to retire and start withdrawing amounts on which to live. Rank the accounts in the order from which she should make withdrawals so that
LO.2 Discuss the cost recovery periods and methods to be used on leasehold improvement property owned by the lessor.
LO.10 Cody’s employer provides a qualified cafeteria plan under which he can choose cash of $20,000 or health and accident insurance premiums worth approximately$14,000. If Cody is in the 35% tax
LO.4, 5, 6, 10 Sara Loflin, age 35, is the owner of a small business. She is trying to decide whether to have a § 401(k) plan or a simplified employee pension plan. She is not interested in a SIMPLE
LO.9 On November 19, 2010, Rex is granted a nonqualified stock option to purchase 100 shares of Tan Company. On that date, the stock is selling for $8 per share, and the option price is $9 per share.
LO.2 Discuss the cost recovery periods and methods to be used on qualified leasehold improvement property owned by the lessee and placed in service in 2012.
LO.9 Rosa exercises ISOs for 100 shares of Copper Corporation common stock at the option price of $100 per share on May 21, 2012, when the fair market value is $120 per share. She sells the 100
LO.8 On July 2, 2009, Black Corporation sold 1,000 of its common shares (worth $14 per share) to Earl, an employee, for $5 per share. The sale was subject to Earl’s agreement to resell the shares

Showing 300 - 400 of 3271

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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