Question
1. April 1, 2021 equipment purchased $14,000. No other depreciable assets purchased during the tax year. No Section 179 or bonus depreciation taken. Estimated residual
1. April 1, 2021 equipment purchased $14,000. No other depreciable assets purchased during the tax year. No Section 179 or bonus depreciation taken. Estimated residual value $1,000. What is the MACRS depreciation for year 2 if this is 7-year property?
Group of answer choices
a. $3,184
b. $3,429
c. $2,000
d. $1,857
2. Which of the following does not provide liability protection to its owner(s)?
Group of answer choices
General partnership
C corporation
S corporation
LLC taxed as a general partnership
3. C corporation has current E&P of $15,000 and $0 prior years' accumulated E&P. Its 100% owner has $12,000 basis in the corporation's stock. Owner receives $35,000 non-liquidating distribution. What is his income and ending stock basis after the distribution?
Group of answer choices
a. $23,000 capital gain, $0 basis
b. $15,000 dividend, $8,000 capital gain, $0 basis
c. $15,000 dividend, $12,000 basis
d. $15,000 dividend, $8,000 negative basis
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