Questions from Federal Taxation

Q: Sally owns 100% of the outstanding stock of Eta, Theta

Sally owns 100% of the outstanding stock of Eta, Theta, Phi, and Gamma Corporations, each of which files a separate return for the current year. During the current year, the corporations report taxabl...

Q: Marilyn owns all of Bell Corporation’s stock. Bell is a C

Marilyn owns all of Bell Corporation’s stock. Bell is a C corporation and employs 40 people. Marilyn is married, has two dependent children, and files a joint tax return with her hus...

Q: Refer to the facts in Problem C:3-54.

Refer to the facts in Problem C:3-54. Marilyn has read an article explaining the advantages of paying nontaxable fringe benefits (premiums on group term life insurance, accident and health insurance,...

Q: Zeta Corporation’s taxable income for 2016 was $1.5 million

Zeta Corporation’s taxable income for 2016 was $1.5 million, on which Zeta paid federal income taxes of $510,000. Zeta estimates calendar year 2017’s taxable income to be $2 million, on which it will...

Q: Wright Corporation’s taxable income for calendar years 2014, 2015, and

Wright Corporation’s taxable income for calendar years 2014, 2015, and 2016 was $120,000, $150,000, and $100,000, respectively. Its total tax liability for 2016 was $22,250. Wright estimates that its...

Q: The following income and expense accounts appeared in the book accounting records

The following income and expense accounts appeared in the book accounting records of Rocket Corporation, an accrual basis taxpayer, for the current calendar year. The following additional information...

Q: Omega Corporation reports the following results for the current year:

Omega Corporation reports the following results for the current year: Net income per books (before federal income taxes)……………………………………..$738,000 Federal income tax expense per books………………………………………………...

Q: How are a transferor’s basis and holding period determined for stock and

How are a transferor’s basis and holding period determined for stock and other property (boot) received in a Sec. 351 exchange? How does the transferee corporation’s assumption of liabilities affect t...

Q: White Corporation’s financial accounting records disclose the following results for the period

White Corporation’s financial accounting records disclose the following results for the period ending December 31 of the current year: Retained earnings balance on January 1……………………………$246,500 Net in...

Q: Omega Corporation, a regular C corporation, presents you with the

Omega Corporation, a regular C corporation, presents you with the following partial book income statement for the current year: Omega also provides the following partial balance sheet information: Y...