Questions from Federal Taxation

Q: Does Title 26 contain statutory provisions dealing only with income taxation?

Does Title 26 contain statutory provisions dealing only with income taxation? Explain.

Q: Sandy acquired business machinery (which qualified as 7-year MACRS

Sandy acquired business machinery (which qualified as 7-year MACRS property) on July 15, 2014, for $10,000. In 2014, Sandy claimed a $1,429 regular MACRS depreciation deduction and she elected not to...

Q: Small Corporation purchased and placed in service the following 100% business

Small Corporation purchased and placed in service the following 100% business-use assets (all of the assets were purchased new). Assume that Small purchased these assets in Year 1, when 50% bonus depr...

Q: Large Corporation acquired and placed in service the following 100% business

Large Corporation acquired and placed in service the following 100% business-use assets. Large did not claim Sec. 179 or bonus depreciation expensing on any of these properties. • Truck (light-duty,...

Q: Turner Corporation uses the calendar year as its tax year. It

Turner Corporation uses the calendar year as its tax year. It purchases and places into service $1.97 million of property during 2017 to use in its business: What is Turner’s total...

Q: In 2017, Tish acquires and places into service in her business

In 2017, Tish acquires and places into service in her business 7-year MACRS property costing $40,000 and 5-year MACRS property costing $165,000. Tish elects Sec. 179 expensing for all of the propertie...

Q: Tampa Corporation sold the following assets in 2017: /

Tampa Corporation sold the following assets in 2017: a. What is the depreciation deduction for each asset in 2017? b. Compute the gain or loss on each asset sold.

Q: In 2017, Richmond Corporation purchases and places into service a used

In 2017, Richmond Corporation purchases and places into service a used machine. Richmond elects Sec. 179 expensing for $510,000 of its $610,000 cost. The machine has a 7-year MACRS recovery period. As...

Q: In 2017, Wabash Corporation purchases two assets and places them into

In 2017, Wabash Corporation purchases two assets and places them into service (both are used property and have a 7-year MACRS recovery period): • Asset #1: $1,300,000 cost; placed in service in Febru...

Q: Long Corporation has been unprofitable for several years and has substantial NOL

Long Corporation has been unprofitable for several years and has substantial NOL carryovers. Therefore, the company has elected to use straightline MACRS for property acquisitions. Long acquires, hold...