Questions from Federal Taxation

Q: Goss Corporation is a leading manufacturer of hangers for the laundry and

Goss Corporation is a leading manufacturer of hangers for the laundry and dry cleaning industry. The family-owned business has prospered for many years and has generated approximately $100 million of...

Q: Eagle Corporation operates a family business established by Edward Eagle, Sr

Eagle Corporation operates a family business established by Edward Eagle, Sr. ten years ago. Edward Eagle, Sr. died, and the Eagle stock passed to his children. The corporation operates rental propert...

Q: Stock in Random Corporation is owned equally by two individual shareholders.

Stock in Random Corporation is owned equally by two individual shareholders. During the current year, Random reports the following results: Income: Rentals………………………………………………………………$200,000 Dividend (f...

Q: Explain Congress’ intent for enacting the AMT.

Explain Congress’ intent for enacting the AMT.

Q: For each of the following statements, indicate whether the statement is

For each of the following statements, indicate whether the statement is true for the PHC tax only, the accumulated earnings tax only, both taxes, or neither tax. a. The tax is imposed only if the cor...

Q: Define the following terms relating to the AMT: a.

Define the following terms relating to the AMT: a. Tax preference item b. AMT adjustment item c. Adjusted current earnings d. Alternative minimum taxable income e. AMT exemption amount f. Tentat...

Q: What are the advantages of business bad debt treatment when a shareholder’s

What are the advantages of business bad debt treatment when a shareholder’s loan or advance to a corporation cannot be repaid? What must the debtholder show to claim a business bad debt deduction?

Q: Dunn Corporation is not a small corporation exempt from the AMT.

Dunn Corporation is not a small corporation exempt from the AMT. Dunn’s CPA does not calculate the AMT because he knows that Dunn’s taxable income is less than the $40,000 AMT exemption amount allowed...

Q: What special rules (if any) apply to the AMT calculation

What special rules (if any) apply to the AMT calculation for the following entities: a. Corporations, particularly small ones b. Controlled groups c. S corporations

Q: Agnew Corporation operates a small manufacturing business. During Year 1 (

Agnew Corporation operates a small manufacturing business. During Year 1 (its first tax year, which is 12 months long), Agnew sells goods for $3.8 million for which the cost of goods sold is $2.8 mill...