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

On April 27, 2018, Auk Corporation acquires 100% of die outstanding stock of Amazon Corporation (E & P of $750,000) for $1.2 million. Amazon Corporation has assets with a fair market value of
On July 20, 2017, Lilac Corporation purchased 25% of the Coffee Corporation stock outstanding. Lilac Corporation purchased an additional 40% of the stock in Coffee on March 22, 2018, and an
Nick, Chris, Stacey, and Mike are each 25% partners in Liberty Partnership, a general partnership. During the current year, the partnership had revenues of $300,000 and nonseparately allocated
Gray is a 50% partner in Fabco Partnership. Gray‘s tax basis in Eabco on January 1, year 4. was $3,000. Fahco made no distributions to the partners dun‘ng year 4 and recorded the
January 4, 2018, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The share-holder's basis, the fair market
Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary received the remaining 20%. Ron contributed land with an FMV of $70,000 and an adjusted basis of
Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows:The building
Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows:The building
Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FMV of $90,000 and an adjusted basis of $30,000 for 40% of the stock.
Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows:The building
Swallow Company is a large real estate construction company that has made a Subchapter S election. The company reports its income using the percentage of completion method. In 2019, the company
On March 31, 2016, Big Boats Company entered into a contract with Vacations Unlimited to produce a state-of-the-art cruise ship, to 1x? completed within three years. Big Boats estimated the total
Tile Wren Construction Company reports its income by the completed contract method. At the end of 2018, 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 2017. 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, 2018,
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 fee
Ashley (a single taxpayer) is the owmer of ABC LLC. The LLC (treated as a sole proprietorship) reports QBI of $900,000 and is not a “specified services” business. ABC paid total W-2 wages of
On December 31 of the current year, after receipt of his share of partnership income, Fox sold his interest in a limited partnership for $50,000 of cash plus relief of all liabilities. On that date,
Desi’s adjusted basis of her partnership interest was $40,000 immediately before she received a distribution in full liquidation of her Makris partnership interest. The distribution consisted of
Gearty’s adjusted basis in Worthington Company, a partnership. was $18,O(X at the time Gearty received the following non-liquidating distributions of partnership
Hart’s adjusted basis of his interest in a partnership was $30,000. He received a no liquidating distribution of $24,000 cash plus a parcel of land with a l’air market value and partnership basis
Peter, a 25% partner in Gold & Stein Partnership, received a $20,000 guaranteed payment in the current year for deductible services rendered to the partnership. Guaranteed payments were not made
A reduction of a partner’s share of partnership liabilities will have what effect Of the partner’s basis in the partnership interest?a. There ¡s no effect on partnership basis.b. The same result
When a partner’s share of partnership liabilities increases, that partner’s bsis in the partnership interest:a. Increases by the partners share of the liabilities. b. Decreases by
Assume the same facts as in Problem 54. Assume that Burgundy, Inc‘s annual guaranteed payment is increased to $120,000 starting on January 1, 2019, and the LLC‘s taxable income for 2018 and 2019
Burgundy, Inc. and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses :1 calendar year. Burgundy receives an annual guaranteed payment
Browne and red, both C corporations, formed the BR Partnership on January 1, 2018. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BR's gross receipts were $22
The JM Partnership was formed to acquire land and subdivide it :15 residential housing lots. On March 1, 2018, Jessica contributed land valued at $600,000 to the partnership, in exchange for a 50%
A corporation was completely liquidated and dissolved during year 14. The filing fees, professional fees, and other expenditures incurred in connection with the liquidation and dissolution
Krol Crop. distributed marketable securities in redemption of its stock in a complete liquidation. On the date of distribution, these securities had a basis of $100,000 and a fair market value of
Jane is the sole shareholder of Buttons, Inc. Buttons has accumulated earnings and profits (E & P) of $65,000 at the beginning of the current year. The current E & P is $35,000. Buttons pays
Jane is the sole shareholder of Buttons, Inc. Buttons has a deficit of $60,000 in accumulated earnings and profits (E & P) at the beginning of the current year. Current E & P is $35,000. If
Which of the following statements is not true?a. Affiliated corporations that file consolidated returns can take a 100% dividends received deduction.b. The dividends received deduction for a small
Ridge Corp., a calendar year C corporation, made a non-liquidating cash distribution to its shareholders of $ 1,000,000 with respect to its stock. At that time, Ridge’s current and accumulated
Fox Corp, owned 2,000 shares of Duffy Corp, stock that it bought in year 0 for $9 per share. In year 8, when the fair market value of the Duffy stock was $20 per share. Fox distributed this stock to
On January 1, year 5, Olinto Corp., an accrual basis, calendar year C corporation, had $35,000 in accumulated earnings and profits. For year 5, Olinto had current earnings and profits of $15,000 and
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
Broadbill Corporation (E & P of $650,000) has 1,000 shares of common stock outstanding. The shares are owned by the following individuals: Tammy, 300 shares; Yvette, 400 shares; and Jeremy, 300
Julio Gonzales is in the 32% tax bracket. He acquired 2,000 shares of stock in Gray Corporation seven years ago at a cost of $50 per share. In the current year, Julio received a payment of $150,000
Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $30,000 for the current year. Because of the lower tax rates on qualifying dividends, Kristen is
Sparrow Corporation (a calendar year, accrual basis taxpayer) had the following transactions in 2018, its second year of operation.Taxable income
During the current year, Gnatcatcher, Inc. (E & P of $1 million), distributed $200,000 each to Brandi and Yuen in redemption of some of their Gnatcatcher stock. The two shareholders acquired
Rover Corporation would like to transfer excess cash to its sole shareholder, Aleshia, who is also an employee. Aleshia is in the 24% tax bracket, and Rover is subject to a 21% rate. Because
Angie and her daughter, Ann, who are the only shareholders of Bluebird Corporation, each paid $200,000 four years ago for their shares in Bluebird. Angie also owns 20% of the stock in Redbird
Orion Corporation's board of directors decides to distribute property to its shareholders rather than pay a cash dividend. Why might Orion’s board make this decision?
In determining Blue Corporation's current E&P for 2018, how should taxable income lie adjusted as a result of the following transactions?a. A capital loss carryover from 2017, fully used in
Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary received the remaining 20%. Ron contributed land with an FMV of $70,000 and an adjusted basis of
Clark and Hunt organized Jet Corp, with authorized voting common stock of $400,000. Clark contributed $60,000 cash. Both Clark and Hunt transferred other property in exchange for Jet stock as
Adams, Beck, and Carr organized Flexo Corp, with authorized voting common stock of $100,000. Adams received 10% of the capital stock in payment for the organizational services that he rendered for
In year 1, Stone, a cash basis taxpayer, incorporated her CPA practice. No liabilities were transferred. The following assets were transferred to the corporation:Cash (checking account)
Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary received the remaining 20%. Ron contributed land with an FMV of $70,000 and an adjusted basis of
Ron, David, and Mary formed Widget, Inc. Ron and David each received 40% of the stock, and Mary received the remaining 20%. Ron contributed land with an FMV of $70,000 and an adjusted basts of
Kennedy (1635 Maple Street, Syracuse, NY 13201) exchanges property (basis of $200,000 and fair market value of $850,000) for 75% of the stock of Red Corporation. The odier 25% is owned by Sarah
Luciana, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Luciana exchanges her property (basis of $50,000 and value of $150,000)
Diego transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability
Hai, a single taxpayer, invested $75,000 in the stock of Penguin Corporation, which recently declared bankruptcy. Although distressed over the loss of her investment, Hai is relieved that she can
Nancy and her daughter, Kathleen, have 1x?en working together in a cattery called "The Perfect Cat.” Nancy formed the business several years ago as a sole proprietorship, and it has been very
Parent Corp, owns 40% of Sub Corp. In the current year, Parent has gross income of $43,000 and allowable deductions of $30,000 before considering any dividends received deduction (DRD). Included in
Which of the following statements is not true for tax years beginning after 2017?a. Affiliated corporations that file consolidated returns can take a 100% dividends received deduction.b. The
The dividends received deduction (DRD) is a tax deduction that may be taken by which of die following?a. An individualb. An S corporation c. A partnershipd. AC corporation
Hirsch, Incorporated, is a calendar year corporation that has had revenues of less than $500,000 since inception. In 2017, Hirsch had a net operating loss that was able to be used in full via a
Before the provision for Federal income tax, Karas Corporation had lxx>k income of $400,000 for the current year. The book income included $100,000 of dividends received from a 15% owned domestic
In the current year, Acorn, Inc., had the following items of income and expense:Sales ..................................$500,000Cost of sales .......................250,000Dividends received
Tern Corporation, a calendar year C corporation, is solely owned by Jessica Ramirez. Tern’s only business since its incorporation in 2015 has liven land surveying services. In Tern's state of
In January 2018, 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
In the current year. Pelican, Inc., a calendar year C corporation, incurs $10,000 of meals and entertainment expenses that it deducts in computing net income per the corporation’s financial
Dove Corporation, a calendar year C corporation, had the following information for 2018:Net income per books (after-tax) ..........................................$386,250Taxable income
The following information for 2018 relates to Sparrow Corporation, a calendar year, accrual method taxpayer.Net income per books (after-tax)
a. 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
Egret Corporation, a calendar year C corporation, was formed on March 6, 2018, and opened for business on July 1, 2018. After its formation but prior to opening for business, Egret incurred the
Gull Corporation, a cash method, calendar year C corporation, was formed and liegan business on November 1, 2018. Gull incurred die following expenses during its first year of operations (November 1,
Florence is the chief financial officer of Hazel Corporation, a publicly traded, calendar year C corporation. For the current year, her compensation package consists of:Cash compensation
Dan Simms is the president and sole shareholder of Simms Corporation (a calendar year C corporation), 1121 Madison Street, Seattie, WA 98121. Dan plans for die corporation to make a charitable
In 2018, Gray Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2013- Gray is contemplating a gift of land to a qualified charity in
Heron Company purchases commercial realty on November 13, 2000, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 23, 2018, for $850,000. What
During 2018, 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
Benton Company (BC), a calendar year entity, has one owner, who is in the 37% Federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). BC’s gross income is
Using the facts of Problem 27, determine the 2018 end-of-year balance in Prance’s deferred tax asset and deferred tax liability balance sheet accounts.Data From Problem 27Prance, Inc., earns
Prance, Inc., earns pretax book net income of $800,000 in 2018. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no
Compute the income tax liability for each of the following unrelated calendar year C corporations.a. In 2017, Darter Corporation has taxable income of $68,000.b. In 2017, Owi Corporation has taxable
Cherry Corporation, a calendar year C corporation, is formed and begins business on April 1, 2018. In connection with its formation. Cherry incurs organizational expenditures of $54,000. Determine
In the current year, Nighthawk Corporation, a calendar year C corporation, has $3-7 million of adjusted taxable income, $125,000 of business interest income, zero floor plan financing interest, and
Aqua Corporation purchases nonresidential real property on May 8, 2015, for $1 million. Straight-line cost recovery is taken in the amount of $89,765 before the property is sold on November 30, 2018,
Goose Corporation, a C corporation, incurs a net capital loss of $12,000 for 2018. It also has ordinary income of $10,000 in 2018. Goose had net capital gains of $2,500 in 2014 and $5,000 in 2017.a.
Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of the 21% corporate tax rate. Omar plans to avoid any tax on dividends
Marmot Corporation pays a dividend of $100,000 in the current year. Otter Corporation, a calendar year C corporation, owns 15% of Marmot's stock. Gerald, an individual taxpayer in the 24% marginal
Gold Corporation, a calendar year C corporation, was formed in 2012 and has been profitable until the current year. In 2018, 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, 2018. One topic on the board’s agenda is the approval of a $25,000 gift to a
On December 27, 2018, 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
ln general, what is the limitation on the deductibility of business interest expense? What happens to any business interest deduction disallowed under the limitation?
ln the current year, Jeanette, an individual in the 24% marginal tax bracket, recognized a $20,000 long-term capital gain. Also in die current year, Parrot Corporation, a calendar year C corporation,
Paula has sales that qualify to 1x? reported on the installment basis. In year 2, installment sales were $40,000 with a cost of $30,000. In year 3, installment sales were $50,000 with a cost of
In 2018, 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
Kay, who is not a dealer, sold an apartment house to Polly during the current year (2018). The closing statement for the sale is as follows:During 2018, Kay collected $9,000 in principal on the
Ross Company is a corporation providing medical diagnostic services. Ross has used the cash method since inception because its gross receipts did not exceed $25 million. This year its average annual
I 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
What accounting method (cash or accrual) would you recommend for the following businesses?a. A gift shop with average annual gross receipts of $900,000.b. An accounting partnership with average
Compute Mary's income or deductions for 2018 using (1) the cash basis and (2) the accrual basis for each of the following:a. In May 2018, Mary paid a license fee of $1,200 for the period June 1,
Gold, Inc., is an accrual basis taxpayer. In 2018, 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 2017, the first year,

Showing 1700 - 1800 of 2880

First
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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