Questions from Federal Taxation

Q: Tom, a calendar year taxpayer, informs you that during the

Tom, a calendar year taxpayer, informs you that during the year, he incurs expenditures of $40,000 that qualify for the incremental research activities credit. In addition, Tom’s research-credit base...

Q: Troy’s financial records for the year reflect the following:

Troy’s financial records for the year reflect the following: Interest income from bank savings account………………..$ 900 Taxable annuity receipts……………………………………………….1,800 City ad valorem property tax on in...

Q: Jane, Jon, and Clyde incorporate their respective businesses and form

Jane, Jon, and Clyde incorporate their respective businesses and form Starling Corporation. On March 1 of the current year, Jane exchanges her property (basis of $50,000 and value of $150,000) for 150...

Q: Michael Kennedy (1635 Maple Street, Syracuse, NY 13201)

Michael 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 other 25% is owned by Sara...

Q: John organized Toucan Corporation 10 years ago. He contributed property worth

John organized Toucan Corporation 10 years ago. He contributed property worth $1 million (basis of $200,000) for 2,000 shares of stock in Toucan (representing 100% ownership). John later gave each of...

Q: Ann and Bob form Robin Corporation. Ann transfers property worth $

Ann and Bob form Robin Corporation. Ann transfers property worth $420,000 (basis of $150,000) for 70 shares in Robin Corporation. Bob receives 30 shares for property worth $165,000 (basis of $30,000)...

Q: Rhonda owns 50% of the stock of Peach Corporation. She

Rhonda owns 50% of the stock of Peach Corporation. She and the other 50% shareholder, Rachel, have decided that additional contributions of capital are needed if Peach is to remain successful in its c...

Q: As sole heir, Dazie receives all of Mary’s property (adjusted

As sole heir, Dazie receives all of Mary’s property (adjusted basis of $1,400,000 and fair market value of $3,820,000). Six months after Mary’s death in 2017, the fair market value is $3,835,000. a. C...

Q: Assume in Problem 36 that Jane receives the 50 shares of Osprey

Assume in Problem 36 that Jane receives the 50 shares of Osprey Corporation stock in consideration for the appreciated property and for the provision of accounting services in organizing the corporati...

Q: On May 2, 1987, Hannah Weather (Social Security Number

On May 2, 1987, Hannah Weather (Social Security Number: 111-22-3333) acquired residential real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On Aug...