Questions from Federal Taxation

Q: In 2017, Phoenix Corporation acquires a new research facility and hires

In 2017, Phoenix Corporation acquires a new research facility and hires several scientists to develop new products. No new products are developed until 2018, although the following expenditures were i...

Q: Phillips Corporation, a construction company that specializes in home construction,

Phillips Corporation, a construction company that specializes in home construction, uses special computer software to schedule jobs and keep track of job costs. It uses generic software for bookkeepin...

Q: Why should tax researchers note the date on which a Treasury Regulation

Why should tax researchers note the date on which a Treasury Regulation was adopted?

Q: Tina acquires an oil and gas property interest for $200,

Tina acquires an oil and gas property interest for $200,000 in the current year. The following information about current year operations is supplied for purposes of computing the amount of Tina’s depl...

Q: Lavonne just completed medical school and residency. She plans to open

Lavonne just completed medical school and residency. She plans to open her medical practice soon. She is not familiar with the intricacies of accounting methods and periods. On advice of her attorney,...

Q: Don owns equipment that he purchased several years ago for $400

Don owns equipment that he purchased several years ago for $400,000. Over the years he properly deducted $110,000 of depreciation. The depreciation will have to be recaptured as ordinary income on the...

Q: Troy Tools manufactures over one hundred different hand tools used by mechanics

Troy Tools manufactures over one hundred different hand tools used by mechanics, carpenters, and plumbers. Troy’s cost accounting system has always been very simple. The costs allocated to inventory h...

Q: Dan turned age 65 and retired this year. He owned and

Dan turned age 65 and retired this year. He owned and operated a tugboat in the local harbor before his retirement. The boat cost $100,000 when he purchased it two years ago. A tugboat is 10-year prop...

Q: Most individuals use the calendar year as their tax year. What

Most individuals use the calendar year as their tax year. What requirement, if any, in the tax law causes this?

Q: Does a similar restriction apply to S corporations? Explain.

Does a similar restriction apply to S corporations? Explain.