Questions from General Taxation

Q: In the current year, Riflebird Company had operating income of $

In the current year, Riflebird Company had operating income of $220,000, operating expenses of $175,000, and a long-term capital loss of $10,000. How do Riflebird Company and Roger, the sole owner of...

Q: Blue Horizons, Inc., a U.S. corporation

Blue Horizons, Inc., a U.S. corporation, is a manufacturing concern that sells most of its products in the United States. It also does some business in the European Union through various branches. Dur...

Q: Aqua, Inc., a calendar year corporation, has the following

Aqua, Inc., a calendar year corporation, has the following gross receipts and taxable income for 2012 through 2015: Aqua’s first year of operations was 2012. a. When is Aqua first...

Q: Falcon, Inc., owns a silver mine that it purchased several

Falcon, Inc., owns a silver mine that it purchased several years ago for $925,000. The adjusted basis at the beginning of the year is $400,000. For the year, Falcon deducts depletion of $7...

Q: In March 2015, Grackle, Inc., acquired used equipment for

In March 2015, Grackle, Inc., acquired used equipment for its business at a cost of $300,000. The equipment is five-year class property for regular income tax purposes and for AMT purposes. Grackle do...

Q: Rust Company is a real estate construction business with average annual gross

Rust Company is a real estate construction business with average annual gross receipts of $3 million. Rust uses the completed contract method on a particular contract that requires 16 months to comple...

Q: Allie, who was an accounting major in college, is the

Allie, who was an accounting major in college, is the controller of a medium- size construction corporation. She prepares the corporate tax return each year. Due to reporting a home construction contr...

Q: Pheasant, Inc., is going to be subject to the AMT

Pheasant, Inc., is going to be subject to the AMT in 2015. The corporation owns an investment building and is considering disposing of it and investing in other realty. Based on an appraisal of the bu...

Q: Flicker, Inc., a closely held corporation, acquired a passive

Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were $122,0...

Q: Maize Corporation (a calendar year corporation) reports the following information

Maize Corporation (a calendar year corporation) reports the following information for the years listed. Compute the ACE adjustment for each year.