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Please answer the 4 attached problems... Thanks. 529 Acorn Corporation, a company that purchases malt barley from farmers and sells it to brewers, is interested
Please answer the 4 attached problems... Thanks.
529 Acorn Corporation, a company that purchases malt barley from farmers and sells it to brewers, is interested in determining whether a new variety of barley will grow successfully in the Pacific Northwest. The corporation has acquired the seed from Europe and will conduct the experiments with the cooperation of farmers in the area. If the experiments prove successful, Acorn will sell the remaining seed to the farmers. What tax issues should Acorn Corporation consider? 530 Lisa and John are in the business of breeding beavers to produce fur for sale. They recently purchased a pair of breeding beavers for $30,000 from XUN, Inc., and agreed to pay interest at 10% each year for five years. After the fiveyear period, they could pay the debt by delivering seven beavers to XUN, Inc., provided that each beaver was at least nine months old. Identify the tax issues involved in this situation. 531 Mike, a real estate broker in California, recently inherited a farm from his deceased uncle and plans to sell the farm to the first available buyer. His uncle purchased the property 12 years ago for $600,000. The FMV of the farm on the date of the uncle's death was $500,000. Mike sells the farm for $520,000 seven months after his uncle's death. What tax issues should Mike consider? 532 Sylvia, a dentist with excellent skills as a carpenter, started the construction of a house that she planned to give to her son as a surprise when he returned from Afghanistan, where he is serving in the military. She began construction on March 23, 2012, and finished the house on July 10, 2013, at a total cost of $70,000. Her son is expected to be home on September 1, 2013. On July 30, 2013, Roscoe offered Sylvia $245,000 for the house and Sylvia considered the offer to be so attractive that she accepted it. She decided that she could purchase a suitable home for her son for about $200,000. What tax issues should Sylvia considerStep by Step Solution
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