10.

1. In 2022 A corporation donates 100 shares of stock worth $25,000 that it purchased for $1,000 several years ago as an investment. Ignoring limitations, what is the amount of the corporations contribution deduction?
2. Would the answer to the previous question change, and if so how, if instead of stock the corporation donated an old piece of jewelry to the museum of modern art. The jewelry was worth $25,000 and was purchased several years ago for $1,000. The museum sells the jewelry since it does not fit with what is being shown in the museum. What is the amount of the corporations contribution deduction?
3. A corporation buys a piece of machinery for $20,000 that is uses in its business. It properly takes $6,000 of depreciation over the years. After a few years it donates the machinery to a charity that trains mechanics and uses the machine in its exempt charitable purpose. At the time of the contribution the machine is worth $16,500. If the corporation is entitled to a charitable contribution for donation of the machine indicate the amount. Otherwise enter N/A

11

1. Corporation Zee has taxable income before deducting charitable contributions of $200,000. The company makes otherwise deductible charitable contributions of $23,000 in 2022. How much if anything can the corporation deduct for the current year?

2. In the following tax year the corporation has taxable income before deducting charitable contributions of $100,000. It makes otherwise eligible contributions of $8,000 in the that year. How much of the charitable contributions made in the that year can the corporation deduct?

3. H Corp has $100,000 of taxable income before deducting any charitable contributions in year 4. It did not make any contributions during it's first three years. It has otherwise deductible charity contributions, of $9,000 in year 4. In year 5 it has short term capital losses of 20,000 and long-term capital gains of $5,000. Does this have any impact on the amount of the charitable contribution deductible in the prior year?

4. In it's first year Corp K has gross income of $100,000 and otherwise deductible expenses other than charitable contributions of $124,000. It makes contributions to valid charities of $20,000. Can the contributions be deducted in year 1?

5. What happens to any contributions from the previous question that Corp K was not able to deduct?

6. If there s a time limit on the use of those deductions indicate what it is.

12

Wal Corp has the following short and long term capital gains and losses in its first 6 years of existence. This is the only activity for the corporation, Give the taxable income for each of the years as of the close of year 6.

Year 1 2 3 4 5 6 Short term 50,000 25,000 40,000 (50,000) -55,000 117,000 Long term (20,000) (30,000) (42,000) 45,000 50,000 (100,000)

13

1. G corporation owns 15% of X Corp. G receives $100,000 in dividends from X. How much dividend income must G Corp report in gross income for the current year if Xs dividend is the only dividend received by G during the year?

2. What is the answer if G owns 45% of X Corp?

14

1. Fox Corp has the following gross income and deductions in its first two years, 2021 and 2022. After the end of 2022 what is the taxable income for Fox Corp in 2021 and in 2022?

	2021	2022
GI	100,000	250,000
Deductions	20,000	400,000

15

1. Negue Corp has the following gross income and deductions for 2022.

2022 GI 250,000 Deductions 400,000

In 2023 it has

GI 500,000 Deductions 400,000

What is the taxable income for 2023?

2. Suppose instead the gross income in 2023 was $600,000 and the deductions were $400,000. What would the taxable income be for 2023?

3. How long can a post 2020 Net Operating Loss be carried over for tax purposes?

16

1. In year 1 Zachia Corp has a sort term capital loss of $10,000 and no other activity. In year two Zachia has gross income from services of $200,000 and deductions for compensation and supplies of $120,000. What is Zachia's taxable income in year 2?

2. Assume instead Zachia has in year 1 gross income from services of $100,000 and deductible expenses of $130,000. In year 2 Zachia has a short term capital gain of $50,000 and no other activity. What is the taxable income in year 2?

17

1. Bartol Corp has gross income from operations of $300,000 and operating expenses of $100,000. It receives dividends of $60,000 (which is not included in the income from operations) from Char Corp in which it owns 2% of the stock. There are no carryover to the current year. What is Bartol's taxable income for the year?

2. Suppose instead Bartol has gross income from operations of $300,000 and operating expenses of $320,000. The dividend is the same, $60,000 (which is not included in the income from operations) What is the taxable income?

3. Assume instead Bartol has gross income from operations of $300,000 and operating expenses of $350,000. The dividend is the same. What is the amount of Bartol's dividend received deduction?

4. Assume instead Bartol has gross income from operations of $300,000 and operating expenses of $375,000. The dividend is the same. What is the amount of Bartol's dividend received deduction?

18

1. In 2022 Delco Corp has gross income from operations of $300,000 and operating expenses of $160,000. It receives dividends of $80,000 (which is not included in the income from operations) from Echy Corp in which it owns 10% of the stock. Delco also has otherwise deductible charitable contributions of $25,000. There are no carryovers to the current year. What is the amount Delco can deduct for charitable contributions for the year?

2. Suppose in 2023 Delco had a short term capital loss of $8,000. Suppose also that in 2022 it had $295,000 of income from operations, the same dividends and operating expenses, and $5,000 of long term capital gains. Would the amount of the deductible charitable contribution deductible in 2022 change?

19

1. Guillome owns 100% of OME Corp. He engages in the following transactions with the corporation: He sells to the corporation for $16,000, land worth $16,000 in which he has an adjusted basis of $18,000. If Guillome recognize gain or loss (indicate the amount. If none enter none

2. In the above transaction what is OME's basis in the land it bought?

3. If OME sells the land two years later for $21,000 how much gain or loss does OME recognize?

20

1. Guillome is a cash basis taxpayer and OME is accrual basis corporation. OME accrues a bonus to Guillome at the end of year 1 in the amount of $100,000. The bonus represents fair compensation for services. OME does not pay the bonus until year 3. When does OME get the deduction for the bonus?

2. OME buys a building from Guillome for $200,000. Guillome originally purchased the building for $150,000, and took straight line depreciation of $30,000. How much gain does Guillome report and what is the character of the gain? The gain is what amount? and the character is