Questions from Federal Taxation

Q: Stanford owns and operates two dry cleaning businesses. He travels to

Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does...

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

List an advantage and a disadvantage of using the U.S. Tax Court as the trial court for Federal tax litigation.

Q: Glenda, a calendar year and cash basis taxpayer, rents property

Glenda, a calendar year and cash basis taxpayer, rents property from Janice. As part of the rental agreement, Glenda pays $8,400 rent on April 1, 2017, for the 12 months ending March 31, 2018. a. How...

Q: Falcon, Inc., paid salaries of $500,000 to

Falcon, Inc., paid salaries of $500,000 to its employees during its first year of operations. At the end of the year, Falcon had unpaid salaries of $45,000. a. Calculate the salary deduction if Falcon...

Q: Maud, a calendar year taxpayer, is the owner of a

Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2017, she leases an office building to use in her business for $120,000 for an 18-month...

Q: Vella owns and operates an illegal gambling establishment. In connection with

Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent………………………………………………. $ 24,000 Bribes………………………….………..……....

Q: Printer Company pays a $25,000 annual membership fee to

Printer Company pays a $25,000 annual membership fee to a trade association for paper wholesalers. The trade association estimates that 60% of its dues are allocated to lobbying activities. a. What ar...

Q: Murphy has a brokerage account and buys on the margin, which

Murphy has a brokerage account and buys on the margin, which resulted in an interest expense of $20,000 during the year. Income generated through the brokerage account was as follows: Municipal inter...

Q: Roberta Santos, age 41, is single and lives at 120

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for thre...

Q: John and Mary Jane Diaz are married, filing jointly. Their

John and Mary Jane Diaz are married, filing jointly. Their address is 204 Shoe Lane, Blacksburg, VA 24061. John is age 35, and Mary Jane is age 30. They are expecting their first child in early 2018....