Questions from Federal Taxation

Q: Several of Egret Company’s employees have asked the company to create a

Several of Egret Company’s employees have asked the company to create a hiking trail that employees could use during their lunch hours. The company owns vacant land that is being held for future expan...

Q: The Sage Company has the opportunity to purchase a building located next

The Sage Company has the opportunity to purchase a building located next to its office. Sage would use the building as a day care center for the children of its employees and an exercise facility for...

Q: Tammy, a resident of Virginia, is considering purchasing a North

Tammy, a resident of Virginia, is considering purchasing a North Carolina bond that yields 4.6% before tax. She is in the 35% Federal marginal tax bracket and the 5% state marginal tax bracket. She is...

Q: Andrea entered into a § 529 qualified tuition program for the benefit

Andrea entered into a § 529 qualified tuition program for the benefit of her daughter, Joanna. Andrea contributed $15,000 to the fund. The fund balance had accumulated to $25,000 by the time Joanna wa...

Q: Dolly is a cash basis taxpayer. In 2017, she filed

Dolly is a cash basis taxpayer. In 2017, she filed her 2016 South Carolina income tax return and received a $2,200 refund. Dolly took the standard deduction on her 2016 Federal income tax return, but...

Q: List an advantage and a disadvantage of using the U.S

List an advantage and a disadvantage of using the U.S. Court of Federal.

Q: Ralph has experienced financial difficulties as a result of his struggling business

Ralph has experienced financial difficulties as a result of his struggling business. He has been behind on his mortgage payments for the last six months. The mortgage holder, who is a friend of Ralph’...

Q: Fred specified in his will that his nephew John should serve as

Fred specified in his will that his nephew John should serve as executor of Fred’s estate. John received $10,000 for serving as executor. Can John exclude the $10,000 from his gross income? Explain.

Q: Carey is a waiter at a restaurant that pays a small hourly

Carey is a waiter at a restaurant that pays a small hourly amount plus tips. Customers are not required to tip the waiter. Carey is especially attentive and friendly, and her tips average 25% of the r...

Q: Holly was injured while working in a factory and received $12

Holly was injured while working in a factory and received $12,000 as workers’ compensation while she was unable to work because of the injury. Jill, who was self-employed, was also injured and unable...