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he will have $132,000 in cash after paying the income taxes. Requirements a. What is the minimum price the investor could accept? b. What is the minimum price the investor could accept if all the gain is subject to the Medicare tax on net investment income? Requirement a. What is the minimum price the investor could accept? Start by selecting the formula to determine the minimum selling price. (Abbreviations used: TR = tax rate, SP= selling price, AT= after tax.) (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) The minimum price the investor could accept is In this scenario, the minimum price the investor could accept is Under Sec. 267 , current deductions may not be taken for certain transactions between related parties. Why are these other relationships included in the definition? These relationships are included because A. the taxpayer may be able to exert control or influence which may keep transactions between the parties from being completely at arm's length. B. the transactions between the taxpayer and these other parties are done at arm's length. C. the taxpayer does not have any control or influence on the transactions with these parties. D. the taxpayer owns at least 25% or more of the corporation or partnership. will be able to amortize the total costs of $51,000 over the life of the asset beginning in May. will be able to deduct $5,000 in expenses this year, and amortize $51,000 over 180 months beginning the following year. will be able to deduct $4,000 in expenses this year, and amortize the remaining $47,000 over 90 months beginning in May. will be able to deduct $4,000 in expenses this year, and amortize the remaining $47,000 over 180 months beginning in May. will be able to deduct the entire $51,000 in expenses in the current year. will not be able to deduct any expenses. wo seminars as earned by December 31 (Sec. 451(c) and Rev. Proc. 2004-34), with the balance earned in year 2, when the remaining 4 seminars are completed. The amounts paid in the current year deductible because they The amounts paid in the following year deductible in the current year because they Requirement a. Who is considered a member of a taxpayer's family under the related party transaction rules of Sec. 267? A. An individual's spouse, brothers and sisters, ancestors, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. B. An individual's spouse, brothers and sisters, uncle and aunts, ancestors, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. C. An individual's spouse, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. D. An individual's spouse, ancestors, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. Requirement b. Identify some of the other relationships that are considered related parties for purposes of Sec. 267 . Why are these other relationships included in the definition? Identify some of the other relationships that are considered related parties for purposes of Sec. 267. (Select all that apply.) A. An individual and a corporation in which the individual owns more than 50% of the value of the outstanding stock. B. An individual and a corporation in which the individual owns more than 25% of the value of the outstanding stock. C. A corporation and a partnership if the same persons own more than 50% in value of the stock of the corporation and more than 50% of the partnership. D. Two corporations if the same persons own more than 50% in value of the outstanding stock of both corporations and at least one of the corporations is an S corporation. E. Two corporations if the taxpayer owns at least 25% in value of the outstanding stock of one corporation and the taxpayer's wife owns at least 25% of the outstanding stock of the other corpora F. An individual and a partnership in which the individual owns more than 25% of the value of the outstanding stock. G. A corporation owned more than 50% by the taxpayer and a partnership owned 25% by the taxpayer and 50% of more by the taxpayer's uncle. Requirement a. What is the proper tax treatment of these expenses if Big Bang does not open the new gallery? If Big Bang does not open the new gallery, they (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar. Enter a "0" if the current year deduction is zero.) Current year deduction if the company does not open the gallery: On January 1,2020 , Swen paid $184,000 for $200,000 of the 8%,20-year bonds of Penn Corporation, issued on January 1,2016 , at par. The bonds are held as an investment. Read the requirement. (If an input field is not used in the table leave the input field empty; do not enter a zero. Use parentheses or a minus sign for a loss.) Requirement Determine the gain and the character of the gain if the bonds are sold on January 1,2022 , for a. $191,000 b. $185,750 c. $183,000 Complete the table below to show the amounts that Solutions can deduct in the current year. (Enter a " 0 " if an amount is not deductible.) Rent Seminar teacher compensation Printer Total During January and February of the current year, Big Bang LLP incurs $51,000 in travel, feasibility studies, and legal expenses to investigate the feasibility of opening a new entertainment gallery in one of the new suburban malls in town. Big Bang LLC does not own any other entertainment galleries and it does not own anything similar at the current time. Assume that the year is 2022. What documentation is required in order for travel or entertainment expenses to be deductible? A. For travel or entertainment expenses to be deductible, documentation such as account books, expense logs, and receipts must exist. B. Statements of witnesses and paid bills are necessary documentation, for travel or entertainment expenses to be deductible. D. All of the above. Transactions 1. Solutions Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30 . On December 15, Solutions received a $5,000 bill from the contractor. Solutions immediately contacted the contractor to contest $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions made no payment on the bill during its current tax year. 2. Solutions offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $11,500 to service warranties during the current tax year, and it expects to pay $12,000 to fulfill the remaining warranty obligations next year. 3. Every year, Solutions offers a series of six trade seminars from November 1 through April 30 . It receives all registration fees from participants by October 1 , before the seminars begin. As of December 31, two of the six seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are routine each year. On the first of each month from November through April, Solutions pays the $625 monthly rent for the seminar location. On September 16 , Solutions signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Solutions to pay the teacher $900 after each seminar, a total of $5,400. On October 3 , Solutions signs a contract with a local printing company, which will provide text materials for the seminars. Solutions pays the printer $350 after each seminar's materials are delivered the day before the seminar. Solutions reports in year 1 only the revenue related to the first two seminars as earned by December 31 (Sec. 451(c) and Rev. Proc. 2004-34), with the balance earned in year 2, when the remaining 4 seminars are completed. Requirement a. What is the minimum price the investor could accept? Start by selecting the formula to determine the minimum selling price. (Abbreviations used: TR= tax rate, SP= selling price, AT= after tax.) the amount you input in the cell to the nearest dollar.) AT[SP(SPTR)]=Basis (BasisTR)SP=AT stor could accept if all the gain is subject to the Medicare tax on net investment income? SP(SPTR)+basis=(ATTR) Id accept is SP[TR(SPbasis)]=AT do not meet the all-events test. fail both the economic performance and all-events tests. meet both the economic performance and all-events tests. pass the all-events test and qualify for the exception to the economic performance test. pass the all-events test, but fail the economic performance test and do not qualify for an exception. net long-term capital gain. Requirement a. To determine gain, what is Daniel's basis for the land? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Daniel's (the donee's) basis for the land is Requirement b. To determine gain, what is Daniel's basis for the building? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Daniel's (the donee's) basis for the building is Requirement c. Will the basis of the land and building be the same as in Parts a and b for purposes of determining a loss? , the basis of the land and building the same as in Parts a and b for purposes of determining a loss because Tim, a cash-basis taxpayer, sells the following marketable securities, which are capital assets during 2022. Determine whether the gains or losses are long-term or short-term. Also determine the net capital gain and adjusted net capital gain for 2022. (Use parentheses or a minus sign for loss amounts.) Tim's 2022 net capital gain is Tim's 2022 adjusted net capital gain is Marketable Securities Neither the economic performance, nor the all-events test have been met. Only a portion of the economic performance test has been met. Only the all-events test has been met. The economic performance and a portion of the all-events tests have been met. identify the particular shares sold. Determine the amount and character of the gain. Using the FIFO method, what is the character of the gain that Sergio will recognize? What is the amount of the gain? his personal home, $6,000 for health insurance premiums, and $2,000 for medicine and doctors. Ignoring any self-employment tax on the business income, what is Joe's AGI? Select the labels and calculate Joe's AGI. (If an input field is not used in the table leave the input field(s) empty. Do not select a label or enter a zero.) Minus: For AGI deductions \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Adjusted gross income Standard Deduction will be able to amortize the total costs of $51,000 over the life of the asset beginning in May. will be able to deduct $5,000 in expenses this year, and amortize $51,000 over 180 months beginning the following year. will be able to deduct $5,000 in expenses this year, and amortize the remaining $46,000 over 90 months beginning in May. will be able to deduct $5,000 in expenses this year, and amortize the remaining $46,000 over 180 months beginning in May. will be able to deduct the entire $51,000 in expenses in the current year. will not be able to deduct any expenses. will be able to amortize the total costs of $51,000 over the life of the asset beginning in May. will be able to deduct $5,000 in expenses this year, and amortize $51,000 over 180 months beginning the following year. will be able to deduct $4,000 in expenses this year, and amortize the remaining $47,000 over 90 months beginning in May. will be able to deduct $4,000 in expenses this year, and amortize the remaining $47,000 over 180 months beginning in May. will be able to deduct the entire $51,000 in expenses in the current year. will not be able to deduct any expenses. bbligations next year. What rules apply? Amount deductible in cument yea Solutions Corporation, a computer vendor and consulting company, uses the accrual method of accounting. Its tax year is the calendar year. The following are three of the corporation's transactions during the current year: and recognizes a short-term capital gain (STCG) of $53,000. Without considering the STCG from the sale, Ryan's taxable income is $250,000. Requirement a. Determine the corporation's net short-term capital gain (NSTCG) for 2022. Ryan Corporation's NSTCG for 2022 is Requirement b. Determine the corporation's 2022 taxable income. Ryan Corporation's taxable income for 2022 is Requirement c. If the sale of the asset in 2017 had occurred in 2016, determine the corporation's 2022 taxable income. If the sale of the asset occurred in 2016, the corporation's 2022 taxable income would be Requirements a. Determine the corporation's net short-term capital gain (NSTCG) for 2022 . b. Determine the corporation's 2022 taxable income. c. If the sale of the asset in 2017 had occurred in 2016, determine the corporation's 2022 taxable income. equirement a. How should Solutions Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) ontractor to contest $1,000 of the total charqes, arquing that it exceeded the price that was aqreed upon. Solutions made no pavment on the bill during its current tax year. That rules apply? mount deductible in current year ts paid in the current year deductib ne table below to show the are are not A. The dealer must clearly identify that the security is held for investment. The identification of the security type must occur before the close of the day on which the security is acquired. B. The security must not be held primarily for sale to customers in the ordinary course of the dealer's trade or business at any time after the day of purchase. C. The gain on the sale or exchange of securities by a dealer in securities is always classified as capital gain. D. Both A and B are correct. Requirement b. What is the proper tax treatment of these expenses if Big Bang decides to open the new gallery on May 1 of the current year and makes the appropriate election under Sec. 195? If Big Bang decides to open the new gallery on May 1 of the current year, they (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar. Enter a "0" if the current year deduction is zero.) Current year deduction if the company does open the gallery: his personal home, $6,000 for health insurance premiums, and $2,000 for medicine and doctors. Ignoring any self-employment tax on the business income, what is Joe's AGI? Select the labels and calculate Joe's AGI. (If an input field is not used in the table leave the input field(s) empty. Do not select a label or enter a zero.) Minus: For AGI deductions \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Adjusted gross income Neither the economic performance nor the all-events tests are met for either of the two amounts. The economic performance and the all-events tests are met for both amounts. The economic performance and the all-events tests are met only for the amount expected to be paid next year. The economic performance and the all-events tests are met only for the amount paid in the current year. During 2022, Kent, a 40-year-old single taxpayer, reports the following items of income and expense: View the data. View the standard deduction. Requirement The amounts above are before any limitations. What is Kent's taxable income for the year? Select the labels and calculate Kent's adjusted gross income, then calculate his taxable income. (For a floors to the nearest whole dollar.) Standard Deduction Requirement a. What is the proper tax treatment of these expenses if Big Bang does not open the new gallery? If Big Bang does not open the new gallery, they (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar. Enter a "0" if the current year deduction is zero.) Current year deduction if the company does not open the gallery: Why are these other relationships included in the definition? These relationships are included because A. the taxpayer may be able to exert control or influence which may keep transactions between the parties from being completely at arm's length. B. the transactions between the taxpayer and these other parties are done at arm's length. C. the taxpayer does not have any control or influence on the transactions with these parties. D. the taxpayer owns at least 25% or more of the corporation or partnership. Complete the table below to show the amounts that Solutions can deduct in the current year. (Enter a " 0 " if an amount is not deductible.) Rent Seminar teacher compensation Printer Total Under what circumstances may a taxpayer deduct an illegal bribe or kickback? A. A bribe or kickback that is illegal under state law may be deducted by the taxpayer if the state law is not generally enforced. B. A bribe or kickback that is illegal under state law may be deducted by the taxpayer if it is reasonable to assume that the taxpayer had no knowledge of the illegal activity. C. A bribe or kickback that is illegal under state law may be deducted by the taxpayer if the payment was considered necessary to maintaining an important business relationship. D. A bribe or kickback that is illegal under state law may be deducted by the taxpayer if the payment was considered necessary to maintain profit margins. Select from the explanations below: View the explanations. Explanations a. An expense that is defined as appropriate or helpful; however, it need not be indispensable. The test here is whether a reasonable business person would have incurred the same expenditure. b. An expense that provides a permanent improvement or "betterment" that increases the value of any property. c. An expense that is reasonable in amount and that bears a reasonable and close (or direct) relationship to the income-producing activity or property. It must be customary or usual to the particular activity. d. An expense that is allocated or related to tax-exempt income. e. An expense that is reasonable in amount. It must not be excessive or unusual when compared to similar expenses made by similar businesses. Transactions 1. Solutions Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30 . On December 15, Solutions received a $5,000 bill from the contractor. Solutions immediately contacted the contractor to contest $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions made no payment on the bill during its current tax year. 2. Solutions offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $11,500 to service warranties during the current tax year, and it expects to pay $12,000 to fulfill the remaining warranty obligations next year. 3. Every year, Solutions offers a series of six trade seminars from November 1 through April 30 . It receives all registration fees from participants by October 1 , before the seminars begin. As of December 31, two of the six seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are routine each year. On the first of each month from November through April, Solutions pays the $625 monthly rent for the seminar location. On September 16 , Solutions signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Solutions to pay the teacher $900 after each seminar, a total of $5,400. On October 3 , Solutions signs a contract with a local printing company, which will provide text materials for the seminars. Solutions pays the printer $350 after each seminar's materials are delivered the day before the seminar. Solutions reports in year 1 only the revenue related to the first two seminars as earned by December 31 (Sec. 451(c) and Rev. Proc. 2004-34), with the balance earned in year 2, when the remaining 4 seminars are completed. Under Sec. 267 , current deductions may not be taken for certain transactions between related parties. Requirement a. Who is considered a member of a taxpayer's family under the related party transaction rules of Sec. 267? A. An individual's spouse, brothers and sisters, ancestors, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. B. An individual's spouse, brothers and sisters, uncle and aunts, ancestors, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. C. An individual's spouse, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. D. An individual's spouse, ancestors, and lineal descendants are considered members of the taxpayer's family for purposes of Sec. 267. Requirement b. Identify some of the other relationships that are considered related parties for purposes of Sec. 267 . Why are these other relationships included in the definition? Identify some of the other relationships that are considered related parties for purposes of Sec. 267. (Select all that apply.) A. An individual and a corporation in which the individual owns more than 50% of the value of the outstanding stock. B. An individual and a corporation in which the individual owns more than 25% of the value of the outstanding stock. C. A corporation and a partnership if the same persons own more than 50% in value of the stock of the corporation and more than 50% of the partnership. D. Two corporations if the same persons own more than 50% in value of the outstanding stock of both corporations and at least one of the corporations is an S corporation. E. Two corporations if the taxpayer owns at least 25% in value of the outstanding stock of one corporation and the taxpayer's wife owns at least 25% of the outstanding stock of the other corpora F. An individual and a partnership in which the individual owns more than 25% of the value of the outstanding stock. G. A corporation owned more than 50% by the taxpayer and a partnership owned 25% by the taxpayer and 50% of more by the taxpayer's uncle. On January 1,2020 , Swen paid $184,000 for $200,000 of the 8%,20-year bonds of Penn Corporation, issued on January 1,2016 , at par. The bonds are held as an investment. Read the requirement. (If an input field is not used in the table leave the input field empty; do not enter a zero. Use parentheses or a minus sign for a loss.) Requirement Determine the gain and the character of the gain if the bonds are sold on January 1,2022 , for a. $191,000 b. $185,750 c. $183,000 Requirement a. What is the minimum price the investor could accept? Start by selecting the formula to determine the minimum selling price. (Abbreviations used: TR= tax rate, SP= selling price, AT= after tax.) the amount you input in the cell to the nearest dollar.) AT[SP(SPTR)]=Basis (BasisTR)SP=AT stor could accept if all the gain is subject to the Medicare tax on net investment income? SP(SPTR)+basis=(ATTR) Id accept is SP[TR(SPbasis)]=AT Requirement a. What is the total amount Eaton may deduct because of these expenditures? Eaton may deduct A. only the cost of making the presentation before a local council which was dealing with legislation that was of direct interest to Eaton's business and is less than the de minimis exception. D. only the cost of the billboard, travel expenses for the trip to the state capital, and the cost of the presentation. The remainder of the expenditures were incurred to influence legislation. (Enter a " 0 " if none of the expenses are deductible.) In this scenario, Eaton's total deduction is these expenditures? Eaton may deduct A. only the cost of the billboard. The remainder of the expenditures were incurred to influence legislation. B. all of the expenditures because the total of the expenditures are deductible under the de minimis exception. D. only the in-house presentation expenditures because the total does not exceed $2,000. (Enter a " 0 " if none of the expenses are deductible.) In this scenario, Eaton's total deduction is Neither the economic performance, nor the all-events test have been met. Only a portion of the economic performance test has been met. Only the all-events test has been met. The economic performance and a portion of the all-events tests have been met. Requirement b. What is the proper tax treatment of these expenses if Big Bang decides to open the new gallery on May 1 of the current year and makes the appropriate election under Sec. 195? If Big Bang decides to open the new gallery on May 1 of the current year, they (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar. Enter a "0" if the current year deduction is zero.) Current year deduction if the company does open the gallery: he will have $132,000 in cash after paying the income taxes. Requirements a. What is the minimum price the investor could accept? b. What is the minimum price the investor could accept if all the gain is subject to the Medicare tax on net investment income? Requirement a. What is the minimum price the investor could accept? Start by selecting the formula to determine the minimum selling price. (Abbreviations used: TR = tax rate, SP= selling price, AT= after tax.) (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) The minimum price the investor could accept is In this scenario, the minimum price the investor could accept is net long-term capital gain. identify the particular shares sold. Determine the amount and character of the gain. Using the FIFO method, what is the character of the gain that Sergio will recognize? What is the amount of the gain? and recognizes a short-term capital gain (STCG) of $53,000. Without considering the STCG from the sale, Ryan's taxable income is $250,000. Requirement a. Determine the corporation's net short-term capital gain (NSTCG) for 2022. Ryan Corporation's NSTCG for 2022 is Requirement b. Determine the corporation's 2022 taxable income. Ryan Corporation's taxable income for 2022 is Requirement c. If the sale of the asset in 2017 had occurred in 2016, determine the corporation's 2022 taxable income. If the sale of the asset occurred in 2016, the corporation's 2022 taxable income would be Requirements a. Determine the corporation's net short-term capital gain (NSTCG) for 2022 . b. Determine the corporation's 2022 taxable income. c. If the sale of the asset in 2017 had occurred in 2016, determine the corporation's 2022 taxable income. Expenses Incurred - $1,300 in airfare and lodging for a trip to Washington, D.C. The purpose of the trip was to protest proposed tax rate increases for individuals and corporations. - $600 for renting space on billboards along the highway. The billboards express its concern regarding pending legislation that would significantly increase property taxes. - $900 in airfare and hotel bills incurred on a trip to the state capital. The purpose of the trip was to meet with the legislative subcommittee on property taxation. - $80 for a subscription to a political newsletter published by a national political party. - $230 in making a presentation to the county council protesting a proposed increase in the property tax levy. Solutions Corporation, a computer vendor and consulting company, uses the accrual method of accounting. Its tax year is the calendar year. The following are three of the corporation's transactions during the current year: will be able to amortize the total costs of $51,000 over the life of the asset beginning in May. will be able to deduct $5,000 in expenses this year, and amortize $51,000 over 180 months beginning the following year. will be able to deduct $4,000 in expenses this year, and amortize the remaining $47,000 over 90 months beginning in May. will be able to deduct $4,000 in expenses this year, and amortize the remaining $47,000 over 180 months beginning in May. will be able to deduct the entire $51,000 in expenses in the current year. will not be able to deduct any expenses. bbligations next year. What rules apply? Amount deductible in cument yea will be able to amortize the total costs of $51,000 over the life of the asset beginning in May. will be able to deduct $5,000 in expenses this year, and amortize $51,000 over 180 months beginning the following year. will be able to deduct $5,000 in expenses this year, and amortize the remaining $46,000 over 90 months beginning in May. will be able to deduct $5,000 in expenses this year, and amortize the remaining $46,000 over 180 months beginning in May. will be able to deduct the entire $51,000 in expenses in the current year. will not be able to deduct any expenses. wo seminars as earned by December 31 (Sec. 451(c) and Rev. Proc. 2004-34), with the balance earned in year 2, when the remaining 4 seminars are completed. The amounts paid in the current year deductible because they The amounts paid in the following year deductible in the current year because they carryovers. View the 2022 tax rate schedule for the Head of Household filing status. View the Preferential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends. Read the requirements. Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends Requirement a. What is the amount of Donna's tax liability? (Do not round intermediary calculations. Tax liability in 2022 Requirement b. What is the amount of Donna's tax liability if the stock is held for 11 months? (Do not Tax liability in 2022 Head of Household Tax Rate Schedule Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: - Ordinary income tax rates (up to 37% in 2022) for gains on assets held one year or less - 28% rate on collectibles gains and includible Sec. 1202 gains - Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $41,675 if married filing separately. What documentation is required in order for travel or entertainment expenses to be deductible? A. For travel or entertainment expenses to be deductible, documentation such as account books, expense logs, and receipts must exist. B. Statements of witnesses and paid bills are necessary documentation, for travel or entertainment expenses to be deductible. D. All of the above. ts paid in the current year deductib ne table below to show the are are not A deduction for a loss incurred on the sale of a capital asset held for investment is a deduction AGI. for from Tim, a cash-basis taxpayer, sells the following marketable securities, which are capital assets during 2022. Determine whether the gains or losses are long-term or short-term. Also determine the net capital gain and adjusted net capital gain for 2022. (Use parentheses or a minus sign for loss amounts.) Tim's 2022 net capital gain is Tim's 2022 adjusted net capital gain is Marketable Securities Requirement a. To determine gain, what is Daniel's basis for the land? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Daniel's (the donee's) basis for the land is Requirement b. To determine gain, what is Daniel's basis for the building? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Daniel's (the donee's) basis for the building is Requirement c. Will the basis of the land and building be the same as in Parts a and b for purposes of determining a loss? , the basis of the land and building the same as in Parts a and b for purposes of determining a loss because During January and February of the current year, Big Bang LLP incurs $51,000 in travel, feasibility studies, and legal expenses to investigate the feasibility of opening a new entertainment gallery in one of the new suburban malls in town. Big Bang LLC does not own any other entertainment galleries and it does not own anything similar at the current time. Assume that the year is 2022. equirement a. How should Solutions Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) ontractor to contest $1,000 of the total charqes, arquing that it exceeded the price that was aqreed upon. Solutions made no pavment on the bill during its current tax year. That rules apply? mount deductible in current year Neither the economic performance nor the all-events tests are met for either of the two amounts. The economic performance and the all-events tests are met for both amounts. The economic performance and the all-events tests are met only for the amount expected to be paid next year. The economic performance and the all-events tests are met only for the amount paid in the current year. do not meet the all-events test. fail both the economic performance and all-events tests. meet both the economic performance and all-events tests. pass the all-events test and qualify for the exception to the economic performance test. pass the all-events test, but fail the economic performance test and do not qualify for an exception. Eaton, LLP owns several apartment complexes and office buildings. The leasing and management of these buildings constitutes Eaton's only business activity. During 2022 , Eaton incurred the following