Questions from Federal Taxation

Q: Carl contributes equipment with a $50,000 adjusted basis and

Carl contributes equipment with a $50,000 adjusted basis and an $80,000 FMV to Cook Corporation for 50 of its 100 shares of stock. His son, Carl Jr., contributes $20,000 cash for the remaining 50 Cook...

Q: Bronze Corporation reports the following data for the current year:

Bronze Corporation reports the following data for the current year: Net profit from recurring operations……………………………………….…….$278,000 Other income and expenses not included in the $278,000 amount: Di...

Q: Campbell Corporation reports regular taxable income of $210,000 in

Campbell Corporation reports regular taxable income of $210,000 in the current year. Campbell takes into account the following facts when calculating the $210,000 amount. • Campbell deducts $100,000...

Q: Sheldon Corporation reports regular taxable income of $150,000 in

Sheldon Corporation reports regular taxable income of $150,000 in the current year. Its regular tax is $41,750. Sheldon takes into account the following facts when calculating the $150,000 amount. •...

Q: Subach Corporation reports $600,000 of regular taxable income for

Subach Corporation reports $600,000 of regular taxable income for the current year. Subach also reports the following information (reflected in regular taxable income, if applicable): Depreciation: F...

Q: Alabama Corporation conducts a copper mining business. During the current year

Alabama Corporation conducts a copper mining business. During the current year, it reports regular taxable income of $400,000, which includes a $100,000 deduction for percentage depletion. The depleta...

Q: What is Middle Corporation’s regular tax, AMT, total federal income

What is Middle Corporation’s regular tax, AMT, total federal income tax, and minimum tax credit generated in each of the following scenarios? Assume that Middle’s A...

Q: For the current year, Delta Corporation reports taxable income of $

For the current year, Delta Corporation reports taxable income of $2 million, tax preference items of $100,000, net positive AMT adjustment items (other than the ACE adjustment) of $600,000, and adjus...

Q: Jones Corporation has $550,000 of regular taxable income,

Jones Corporation has $550,000 of regular taxable income, $120,000 of tax preference items, $240,000 of net positive AMT adjustment items (other than the ACE adjustment), and $970,000 of adjusted curr...

Q: Duncan Corporation sells land in the current year (Year 1)

Duncan Corporation sells land in the current year (Year 1) for $900,000. The land is Sec. 1231 property having a $360,000 adjusted basis. The purchaser of the land pays Duncan $300,000 in the current...