All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question

Search
Sign In
Register

study help
business
south western federal taxation

Questions and Answers of South Western Federal Taxation

Which of the following are requirements to be an S corporation?a. Limited to an absolute maximum of 100 shareholders.b. Has no resident alien shareholders.c. Has only one class of stock.d. May have
Glow and Bro organized an S corporation and intended to have only one class of stock. They agreed that all distributions should be proportional to their stock ownership. During 2019, Bro withdrew
Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment
The RB LLC is owned equally by Romer and Brad. At the beginning of the year, Romer’s basis is $40,000 and Brad’s is $32,000. RB reported the following income and expenses for the current tax
Barney is a managing LLC member (treated as a general partner) of BG LLC and is allocated qualified business income (QBI) from BG of $800,000. (BG is not a “specified service trade or business.”)
Marcus and Madison are equal members of an LLC. On January 1 of the current year, to acquire a one-third interest in the entity, Nora contributed a parcel of land she had held for investment. (At
CL LLC is a manufacturing business and reported taxable income of $40,000,000 before interest expense, taxes, depreciation, and amortization (“tax EBITDA”), plus $1,500,000 of separately stated
Browne and Red, both C corporations, formed the BR Partnership on January 1, 2019. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BR’s gross receipts were
The JM Partnership was formed to acquire land and subdivide it as residential housing lots. On March 1, 2019, Jessica contributed land valued at $600,000 to the partnership, in exchange for a 50%
During the current tax year, Dave and Stu formed the DS LLC with Dave contributing land with a basis of $360,000 and a fair market value of $600,000 at the contribution date. At the end of the year,
Sam and Drew are equal partners in SD LLC formed on June 1 of the current year. Sam contributed land that he inherited from his uncle in 2013. Sam’s uncle purchased the land in 1986 for $30,000.
Mike and Melissa want to form the equal MM Partnership. Melissa will contribute cash of $140,000. Mike has cash of $40,000 and land (fair market value of $100,000, adjusted basis of $136,000). Mike
Gearty’s adjusted basis in Worthington Company, a partnership, was $18,000 at the time Gearty received the following proportionate nonliquidating distributions of partnership
What is the purpose of the qualified business income deduction under § 199A? How is the deduction calculated? What information does the partnership report?
Your clients, Grayson Investments, Inc. (Ana Marks, President), and Blake Caldwell, each contributed $200,000 of cash to form the Realty Management Partnership, a limited partnership. Grayson is the
On April 23, 2019, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1,200,000. Amazon Corporation has assets with a fair market value of
On July 20, 2018, Lilac Corporation purchased 25% of the Coffee Corporation stock outstanding. Lilac Corporation purchased an additional 40% of the stock in Coffee on March 22, 2019, and an
On January 4, 2019, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under ? 351. The shareholder?s basis, the fair market
Olinto Corp., an accrual basis calendar year C corporation, had no corporate shareholders when it liquidated in year 12. In cancellation of all their Olinto Corp. stock, each Olinto Corp. shareholder
Generally, in a direct distribution of assets to the shareholders that results in a complete corporate liquidation:a. There is no taxable event.b. The corporation recognizes no gain or loss because
Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2019, its second year of operation:Taxable
ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000. Accumulated earnings and profits (E & P) at the end of year 4 were $10,000. Current E &
ABC Corp. paid two cash distributions during year 5. The first was $42,000, and the second was $33,000. Accumulated earnings and profits (E & P) at the end of year 4 were $80,000. Current E &
Your firm has a new individual client, Carla Navarro, who has been assigned to you for preparation of the current year’s tax return. Upon review of Carla’s tax returns from prior years, you
In determining Blue Corporation’s current E & P for 2019, how should taxable income be adjusted as a result of the following transactions?a. A capital loss carryover from 2018, fully used in
Kenny Merinoff and his son, John, own all of the outstanding stock of Flamingo Corporation. Both John and Kenny are officers in the corporation and, together with John’s uncle, Ira, comprise the
Julio sold his corporation to a competitor, Exeter LLC, for $100,000,000. Julio incorporated his business 17 years ago by investing $500,000 plus his proprietary know-how. There have been no other
In January 2019, Pelican, Inc., established an allowance for uncollectible accounts (bad debt reserve) of $70,000 on its books and increased the allowance by $120,000 during the year. As a result of
Dove Corporation, a calendar year C corporation, had the following information for 2019:Net income per books (after-tax)........................................................$386,250Taxable
The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer:Net income per books
In each of the following independent situations, determine the corporation’s income tax liability. Assume that all corporations use a calendar year for tax purposes and that the tax year involved
Egret Corporation, a calendar year C corporation, was formed on March 6, 2019, and opened for business on July 1, 2019. After its formation but prior to opening for business, Egret incurred the
Gull Corporation, a cash method, calendar year C corporation, was formed and began business on November 1, 2019. Gull incurred the following expenses during its first year of operations (November 1,
Julieta Simms is the president and sole shareholder of Simms Corporation (a cash method, calendar year C corporation), 1121 Madison Street, Seattle, WA 98121. Julieta plans for the corporation to
In 2019, Gray Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2014. Gray is contemplating a gift of land to a qualified charity in
Joseph Thompson is president and sole shareholder of Jay Corporation (a cash method, calendar year C corporation). In December 2019, Joe asks your advice regarding a charitable contribution he plans
Heron Company purchases commercial realty on November 13, 2001, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 22, 2019, for $850,000. What
During 2019, Gorilla Corporation, a calendar year C corporation, has net shortterm capital gains of $15,000, net long-term capital losses of $105,000, and taxable income from other sources of
Cherry Corporation, a calendar year C corporation, is formed and begins business on April 1, 2019. In connection with its formation, Cherry incurs organizational expenditures of $54,000. Determine
Aqua Corporation purchases nonresidential real property on May 8, 2016, for $1,000,000. Straight-line cost recovery is taken in the amount of $89,765 before the property is sold on November 27, 2019,
Parent Corp. owns 15% of Sub Corp. Parent has gross income of $43,000 and allowable deductions of $40,000 before considering any dividends received deduction (DRD). Included in the $43,000 gross
Gold Corporation, a calendar year C corporation, was formed in 2012 and has been profitable until the current year. In 2019, Gold incurs a net operating loss. Identify the issues that Gold
The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end meeting on December 27, 2019. One topic on the board’s agenda is the approval of a $25,000 gift to a
On December 27, 2019, the directors of Partridge Corporation, an accrual basis calendar year taxpayer, authorized a cash contribution of $10,000 to the American Cancer Association. The payment is
Campbell Corporation, an accrual basis calendar year corporation, had income of $450,000 for financial statement purposes in year 7. This amount included book depreciation of $50,000. The related tax
Tapper Corp., an accrual basis calendar year corporation, was organized on January 2, year 1. During year 1, revenue was exclusively from sales proceeds and interest income. The following information
In year 6, Garland Corp. contributed $40,000 to a qualified charitable organization. Garland’s year 6 taxable income before the deduction for charitable contributions was $410,000. Included in that
Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern’s only business since its incorporation in 2016 has been land surveying services. In Tern’s state of
On March 31, 2017, Big Boats Company entered into a contract with Vacations Unlimited to produce a state-of-the-art cruise ship, to be completed within three years. Big Boats estimated the total cost
The Wren Construction Company reports its income by the completed contract method. At the end of 2019, the company completed a contract to construct a building at a total cost of $800,000. The
George sold land to an unrelated party in 2018. His basis in the land was $45,000, and the selling price was $120,000—$30,000 payable at closing and $30,000 (plus 10% interest) due January 1, 2019,
On December 30, 2018, Maud sold land to her son, Charles, for $50,000 cash and a 7% installment note for $350,000, payable over 10 years. Maud’s cost of the land was $150,000. In October 2020,
On June 30, 2019, Kelly sold property for $240,000 cash and a $960,000 note due on September 30, 2020. The note will also pay 6% interest, which is slightly higher than the Federal rate. Kelly’s
How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer?a. The company guarantees its products for six months. At the end of 2019,
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and
Compute Mary’s income or deductions for 2019 using (1) the cash basis and (2) the accrual basis for each of the following.a. In May 2019, Mary paid a license fee of $1,200 for the period June 1,
Gold, Inc., is an accrual basis taxpayer. In 2019, an employee accidentally spilled hazardous chemicals on leased property. The chemicals destroyed trees on neighboring property, resulting in $30,000
Zorn conducted his professional practice through Zorn, Inc. The corporation uses a fiscal year ending September 30 even though the business purpose test for a fiscal year cannot be satisfied. For the
Shumpert, Inc., entered into a contract that was to take two years to complete, with an estimated cost of $900,000. The contract price was $1,300,000. Costs of the contract for 2018, the first year,
Jebali Corporation, a calendar year taxpayer utilizing the completed contract method of accounting, constructed a building for Samson, Inc., under a longterm contract. The gross contract price was
In 2019, Skylar sold an apartment building for $20,000 cash and a $300,000 note due in two years. Skylar’s cost of the property was $250,000, and he had deducted depreciation of $150,000, $60,000
On December 30, 2019, Whitney sold a piece of property for $85,000. Her basis in the property was $40,000, and she incurred $1,200 in selling expenses. The buyer paid $5,000 down with the balance
For 2019, Essence Company, a calendar year taxpayer, will change from using the cash method for tax purposes to the accrual method. At the end of 2018, Essence showed the following items.Accounts
In 2019, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivable to Chaya that have a fair market value of
In 2019, Aurora received a $25,000 bonus computed as a percentage of profits. In 2020, Aurora’s employer determined that the 2019 profits had been incorrectly computed, and Aurora had to refund the
Delaine is a 90% shareholder in a personal service corporation (PSC). The corporation paid Delaine a salary of $265,000 during its fiscal year ending September 30, 2019.a. Assume that the corporation
In December 2019, Carl Corporation sold land it held as an investment. The corporation received $50,000 in 2019 and a note payable (with adequate interest) for $150,000 to be paid in 2021. Carl
On June 1, 2017, Father sold land to Son for $300,000. Father reported the gain by the installment method, with the gain to be spread over five years. In May 2019, Son received an offer of $400,000
Samantha, an accrual basis taxpayer, subscribes to a service that updates a database used in her business. In December 2019, Samantha paid the $120,000 subscription for the period January 2019
In 2019, the taxpayer became ineligible to use the cash method of accounting. At the beginning of the year, accounts receivable totaled $240,000, accounts payable for merchandise totaled $80,000,
In December 2019, Nell, Inc., an accrual basis taxpayer, paid $12,000 for insurance premiums for the 2020 calendar year. How much of the premiums can Nell, Inc., deduct in 2019?
Fred, a cash basis taxpayer, received a $15,000 bonus from his employer in 2019. The bonus was based on the company’s profits for 2018. In 2020, the company discovered that its 2018 profits were
A law practice was incorporated on January 1, 2019, and expects to earn $25,000 per month before deducting attorney Shonda’s salary. Shonda owns 100% of the stock in the practice. The corporation
In 2019, your client, Clear Corporation, changed from the cash to the accrual method of accounting for its radio station. The company had a positive § 481 adjustment of $2.4 million as a result of
Elliot operates his clothing store as a single member LLC (which he reports as a sole proprietorship). In 2019, his proprietorship generates qualified business income of $280,000, he pays W–2 wages
Ting is a CPA and a single taxpayer using the standard deduction. In 2019, her CPA practice generates qualified business income of $162,200; she records no other income or losses. Ting’s taxable
Susan, a single taxpayer, owns and operates a bakery as a sole proprietorship. The business is not a specified services business. In 2019, the business pays $100,000 in W–2 wages, holds $150,000 of
Diego and Molly are married and will file a joint return. Diego earns $300,000 from his single member LLC (a law firm), which the tax law treats as a sole proprietorship. Wages paid by the law firm
Stella Watters is a CPA and operates her own accounting firm (Watters CPA LLC). As a single member LLC, Stella reports her accounting firm operations as a sole proprietor. Stella has QBI from her
Scott and Laura are married and file a joint tax return. Laura owns a sole proprietorship (not a “specified services” business) that incurs qualified business income of $300,000. The
Donald owns a wide variety of commercial rental properties held in a single member LLC. Donald’s LLC reports rental income of $1,500,000. The LLC pays no W–2 wages; rather, it pays a management
Ashley (a single taxpayer) is the sole owner of ABC LLC. The LLC (treated as a sole proprietorship for Federal income tax purposes) reports QBI of $900,000 and is not a “specified services”
Prakash Samuels owns and manages his single member LLC that provides a wide variety of financial services to his clients. He is married and will file a joint tax return with his wife, Amy. The LLC
Shelly reports $200,000 of QBI from her local jewelry store (a sole proprietorship). Shelly’s proprietorship paid $30,000 in W–2 wages and owns $20,000 of qualified property. Shelly’s spouse
Purple Company records $200,000 in net income for 2019 before deducting any compensation or other payment to its sole owner, Kirsten. Kirsten is single, and she claims the $12,200 standard deduction.
Henry, a freelance driver, finds passengers using various platforms such as Uber and Grubhub. He is single and has no other sources of income. In 2019, Henry’s qualified business income from
Jason and Paula are married. They file a joint return for 2019 on which they report taxable income before the QBI deduction of $200,000. Jason operates a sole proprietorship, and Paula is a partner
Thad, a single taxpayer, reports taxable income before the QBI deduction of $190,700. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship).
In 2019, Meghann Carlson, a single taxpayer, reports QBI of $110,000 and modified taxable income of $78,000 (this is also her taxable income before the QBI deduction). What is Meghann’s QBI
Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates
Calculate the taxpayer’s 2019 qualifying business income deduction for a qualified trade or business.Filing status: SingleTaxable income: $180,000Net capital gains: $0Qualified business income
Calculate the taxpayer’s 2019 qualifying business income deduction for a qualified trade or business.Filing status: SingleTaxable income: $100,000Net capital gains: $0Qualified business income
Which of the following is true about the qualifying business income (QBI) deduction for taxpayers with taxable income above the taxable income limitations?a. If the taxpayer is a specified service
Which of the following statements is true regarding taxpayers with taxable income below the taxable income limitations for the qualifying business income (QBI) deduction?a. QBI deduction is allowed
What is the basic calculation for the qualifying business income deduction?a. 30% × Qualifying business income (QBI)b. 20% × W–2 wagesc. 20% × Qualifying business income (QBI)d. 30% × W–2
Which of the following is considered a specified service trade or business (SSTB) for purposes of the qualifying business income deduction?a. Accounting firmb. Manufacturing companyc. Engineering
Tan Corporation purchased depreciable tangible personal property for $100,000 in 2017 and immediately expensed the entire cost under § 179. In 2019, when the property was worth $80,000, Tan
Dedriea contributes to her wholly owned corporation some tangible personal property she had used in her sole proprietorship business and depreciated. She had acquired the property for $566,000 and
Miguel receives tangible personal property as an inheritance in 2017. The property was depreciated by the deceased (Miguel’s father), and Miguel will also depreciate it. At the date of the
Anna received tangible personal property with a fair market value of $65,000 as a gift in 2017. The donor had purchased the property for $77,000 and had taken $77,000 of depreciation. Anna used the

Showing 1100 - 1200 of 2880

First
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Last

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Company Info

Security
Copyrights
Privacy Policy
Terms & Condition
SolutionInn Fee
Scholarship

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Copyright © 2024 SolutionInn All Rights Reserved.

Get the SolutionInn - Study Help App