Questions from Federal Taxation

Q: For each of the following items considered independently, indicate whether the

For each of the following items considered independently, indicate whether the circumstances call for an addition modification (A), a subtraction modification (S), or no modification (N) in computing...

Q: For each of the following organizations, determine its UBTI and any

For each of the following organizations, determine its UBTI and any related UBIT. a. Worn, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clot...

Q: An exempt organization appropriately makes the § 501(h) election

An exempt organization appropriately makes the § 501(h) election to lobby on a limited basis. The amount of its lobbying expenditures is less than its lobbying expenditures ceiling, yet it is subject...

Q: Gloria Martinez, an NRA, is a professional golfer. She

Gloria Martinez, an NRA, is a professional golfer. She played in seven tournaments in the United States in the current year and earned $250,000 in prizes from these tournaments. She deposited the winn...

Q: Willa, a U.S. corporation, owns the rights

Willa, a U.S. corporation, owns the rights to a patent related to a medical device. Willa licenses the rights to use the patent to IrishCo, which uses the patent in its manufacturing facility located...

Q: USCo incurred $100,000 in interest expense for the current

USCo incurred $100,000 in interest expense for the current year. The tax book value of USCo’s assets generating foreign-source income is $5 million. The tax book value of USCo’s assets generating U.S....

Q: Evaluate this statement: An S corporation can facilitate the meeting of

Evaluate this statement: An S corporation can facilitate the meeting of its state income tax filing obligations by developing a common spreadsheet that allocates and apportions income among the states...

Q: USCo owns 65% of the voting stock of LandCo, a

USCo owns 65% of the voting stock of LandCo, a Country X corporation. Terra, an unrelated Country Y corporation, owns the other 35% of LandCo. LandCo owns 100% of the voting stock of OceanCo, a Countr...

Q: ABC, Inc., a domestic corporation, reports $50 million

ABC, Inc., a domestic corporation, reports $50 million of taxable income, including $15 million of general limitation foreign-source taxable income, on which ABC paid $5 million in foreign income taxe...

Q: Assume in Problem 28 that the land had a fair market value

Assume in Problem 28 that the land had a fair market value of $630,000 on the date of its transfer to the corporation. On the date of the liquidation, the land’s fair market value has decreased to $50...