Questions from Federal Taxation

Q: Elizabeth owns equipment that cost $500,000 and has an

Elizabeth owns equipment that cost $500,000 and has an adjusted basis of $230,000. If the straight-line method of depreciation had been used, the adjusted basis would be $300,000. a. What is the maxi...

Q: Arnie, a college student, purchased a truck in 2015 for

Arnie, a college student, purchased a truck in 2015 for $6,000. He used the truck 70% of the time as a distributor for the local newspaper and 30% of the time for personal use. The truck has a five-ye...

Q: General Corporation owns equipment which cost $70,000 and has

General Corporation owns equipment which cost $70,000 and has a $44,000 adjusted basis. General exchanges the equipment for other equipment ($42,000 FMV) and marketable securities ($30,000 FMV). Deter...

Q: Assume the same facts as in Problem I:13-47

Assume the same facts as in Problem I:13-47 except the taxpayer is a corporation and answer the same questions. From problem 37: Charles owns an office building and land that are used in his trade or...

Q: Name three primary sources of authority that tax professionals should check against

Name three primary sources of authority that tax professionals should check against the citator before relying on those sources for important matters.

Q: Brigham is single and is in the 33% marginal income tax

Brigham is single and is in the 33% marginal income tax bracket. He has the sales or exchanges below. At the beginning of the year, he has nonrecaptured net Sec. 1231 losses of $10,000. Determine the...

Q: Mr. Briggs purchased an apartment complex on January 10, 2015

Mr. Briggs purchased an apartment complex on January 10, 2015, for $2 million with 10% of the price allocated to land. He sells the complex on October 22, 2017, for $2.5 million. Assume that 10% of th...

Q: Jesse owns a duplex used as residential rental property. The duplex

Jesse owns a duplex used as residential rental property. The duplex cost $100,000 in 1986, and 10% of the cost was allocated to the land. Total cost-recovery deductions allowed amount to $90,000. The...

Q: Rosemary owns an office building placed in service in 1980 that cost

Rosemary owns an office building placed in service in 1980 that cost $625,000 and has an adjusted basis of $227,000. If the straight-line method of depreciation were used, the adjusted basis would be...

Q: Consider three office buildings placed in service as shown below and answer

Consider three office buildings placed in service as shown below and answer the following true-false questions. Assume all assets are sold by a noncorporate taxpayer at a gain and there are no other s...