LO.1, 2 Determine Amos Seagulls gross income in each of the following cases: a. In the current
Question:
LO.1, 2 Determine Amos Seagull’s gross income in each of the following cases:
a. In the current year, Seagull Corporation purchased an automobile for $25,000. The company was to receive a $1,500 rebate from the manufacturer. However, the corporation directed that the rebate be paid to Amos, the corporation’s sole shareholder.
b. Amos sold his corporation. In addition to the selling price of the stock, he received
$50,000 for a covenant not to compete—an agreement that he will not compete with his former business for five years.
c. Amos and his neighbor got into an argument over Amos’s dog. The neighbor built a fence to keep the dog out of his yard. The fence cost $2,000 but added $3,000 to the value of Amos’s property.
Step by Step Answer:
South Western Federal Taxation 2013 Individual Income Taxes
ISBN: 9781133189558
36th Edition
Authors: William Hoffman, James E. Smith