Questions from General Taxation

Q: During the current year, Biggie, Inc., a delivery company

During the current year, Biggie, Inc., a delivery company operating as an S corporation, reported the following results from operations: Revenue………………………………………………$280,000 Salaries………………………………………………….....

Q: Crow Corporation, an S corporation from the date of its incorporation

Crow Corporation, an S corporation from the date of its incorporation, is in the process of liquidating. During the current year, it reports gross receipts of only $40,000; it has passive investment i...

Q: Walter Williams, a travel writer, has worked for a well

Walter Williams, a travel writer, has worked for a well-known publication for a number of years as a private contractor. Last year a friend suggested he become an S corporation, but he failed to make...

Q: A corporation has operating income of $75,000. What

A corporation has operating income of $75,000. What is its taxable income if it receives a $20,000 dividend from another corporation in which it has the following ownership: a. 10% b. 65% c. 90%

Q: Go to the IRS Web site at www.irs.gov

Go to the IRS Web site at www.irs.gov and locate Publication 946: How to Depreciate Property. Locate the depreciation tables at the end of the publication and calculate the regular first-year deprecia...

Q: Go to the IRS Web site at www.irs.gov

Go to the IRS Web site at www.irs.gov and locate Publication 946: How to Depreciate Property. Locate the depreciation tables at the end of the publication and calculate the first-year depreciation for...

Q: Go to the IRS Web site at www.irs.gov

Go to the IRS Web site at www.irs.gov and locate Publication 946: How to Depreciate Property. Locate the section on where amortization is reported. On what form is amortization reported? On which part...

Q: The Crane Corporation issues $1,500,000 in bonds

The Crane Corporation issues $1,500,000 in bonds with a 7.5 percent interest rate. If its marginal tax rate is 35 percent, what is its after-tax cost of the debt?

Q: Charlie sold Whiteacre for $40,000 cash and the buyer

Charlie sold Whiteacre for $40,000 cash and the buyer assumed Charlie’s $19,000 mortgage on the property. Charlie paid realtor commission of $2,000 on the sale. What is his realized gain or loss if Wh...

Q: Allan received $5,000 cash and an auto worth $

Allan received $5,000 cash and an auto worth $15,000 in exchange for land encumbered by a $13,000 liability that the buyer assumed. a. What is the amount realized on this sale? b. If Allan had a bas...