Questions from Federal Taxation

Q: In 2017, Trish, a self-employed CPA and calendar

In 2017, Trish, a self-employed CPA and calendar year taxpayer, acquires and places in service an automobile and a personal computer. Pertinent data include the following: For each asset, calculate t...

Q: Refer to IRC Sec. 301. a. Which subsection

Refer to IRC Sec. 301. a. Which subsection discusses the general rule for the tax treatment of a property distribution? b. Where should one look for exceptions to the general rule? c. What type of...

Q: Assume the same facts as in Problem I:10-35

Assume the same facts as in Problem I:10-35, except Trish is an employee who uses the automobile and personal computer for employment-related activities. While both assets are helpful to Trish in perf...

Q: Tammy acquired an automobile for $20,000 on July 1

Tammy acquired an automobile for $20,000 on July 1, 2014. She used the automobile partially for business purposes during the 2014–2017 period. The percentage of business use is as follows: 2014, 70%,...

Q: Lutz Corporation acquired a 100% business-use automobile (MACRS

Lutz Corporation acquired a 100% business-use automobile (MACRS 5-year recovery) on July 1, 2017 for $32,000. The company did not elect Sec. 179 expensing and elects out of bonus depreciation. What is...

Q: Luby Corporation acquires a 100% business-use automobile (MACRS

Luby Corporation acquires a 100% business-use automobile (MACRS 5-year recovery) on July 1, 2017 for $36,000. Luby does not elect Sec. 179 and elects out of bonus depreciation. What are depreciation d...

Q: Tracy acquires an automobile (MACRS 5-year recovery) on

Tracy acquires an automobile (MACRS 5-year recovery) on March 1, 2017. He uses the automobile 70% of the time in his business and 30% of the time for personal use. The automobile cost $36,000. No amou...

Q: Troy entered into a three-year lease of a luxury automobile

Troy entered into a three-year lease of a luxury automobile on January 1, 2017, for use 80% in business and 20% for personal use. The FMV of the automobile at the inception of the lease was $40,500, a...

Q: On January 1 of the current year, Palm Corporation purchases the

On January 1 of the current year, Palm Corporation purchases the net assets of Vicki’s unincorporated business for $600,000. The tangible net assets have a $300,000 book value and a $400,000 FMV. The...

Q: Park Corporation incurs the following costs in the initial year of doing

Park Corporation incurs the following costs in the initial year of doing business: Materials and supplies for research laboratory $ 80,000 Utilities and de...