Question: Dan Simms is the president and sole shareholder of Simms
Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121. Dan plans for the corporation to make a charitable contribution to the University of Washington, a qualified public charity. He will have the corporation donate Jaybird Corporation stock, held for five years, with a basis of $11,000 and a fair market value of $25,000. Dan projects a $310,000 net profit for Simms Corporation in 2014 and a $100,000 net profit in 2015. Dan calls you on December 12, 2014, and asks whether Simms should make the contribution in 2014 or 2015. Write a letter advising Dan about the timing of the contribution.
Answer to relevant QuestionsBlue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project began in 2014. Blue had the following expenses in connection with the project. The new product will be introduced for sale ...Debra acquired the following new assets during 2014. Determine Debra’s cost recovery deductions for the current year. Debra does not elect immediate expensing under § 179. She does not claim any available additional ...On June 5, 2013, Dan purchased and placed in service a 7-year class asset costing $550,000. Determine the maximum deductions that Dan can claim with respect to this asset in 2013 and 2014. Mike Saxon is negotiating the purchase of a business. The final purchase price has been agreed upon, but the allocation of the purchase price to the assets is still being discussed. Appraisals on a warehouse range from ...Lark Corporation is considering the acquisition of an asset for use in its business over the next five years. However, Lark must decide whether it would be better served by leasing the asset or buying it. An appropriate ...
Post your question