Questions from Federal Taxation

Q: Marquette Corporation, a tax client since its creation three years ago

Marquette Corporation, a tax client since its creation three years ago, has requested that you prepare a memorandum explaining its estimated tax requirements for the current year. The corporation is i...

Q: Susan Smith accepted a new corporate client, Winter Park Corporation.

Susan Smith accepted a new corporate client, Winter Park Corporation. One of Susan’s tax managers conducted a review of Winter Park’s prior year tax returns. The review revealed that an NOL for a prio...

Q: The Chief Executive Officer of a client of your public accounting firm

The Chief Executive Officer of a client of your public accounting firm saw the following advertisement in a financial newspaper: DONATIONS WANTED The Center for Restoration of Waters A Nonprofit Rese...

Q: What items are considered to be property for purposes of Sec.

What items are considered to be property for purposes of Sec. 351(a)? What items are not considered to be property?

Q: High Corporation incorporates on May 1 and begins business on May 10

High Corporation incorporates on May 1 and begins business on May 10 of the current year. What alternative tax years can High elect to report its initial year’s income?

Q: Zero Corporation contributes inventory (computers) to State University for use

Zero Corporation contributes inventory (computers) to State University for use in its mathematics program. The computers have a $1,225 cost basis and a $2,800 FMV. How much is Zero’s charitable contri...

Q: Why is a dividends-received deduction disallowed if the stock on

Why is a dividends-received deduction disallowed if the stock on which the corporation pays the dividend is debt-financed?

Q: Deer Corporation is a C corporation. Its taxable income for the

Deer Corporation is a C corporation. Its taxable income for the current year is $200,000. What is Deer Corporation’s income tax liability for the year?

Q: Budget Corporation is a personal service corporation. Its taxable income for

Budget Corporation is a personal service corporation. Its taxable income for the current year is $75,000. What is Budget’s income tax liability for the year?

Q: What is the advantage of a special apportionment plan for the benefits

What is the advantage of a special apportionment plan for the benefits of the 15%, 25%, and 34% tax rates to members of a controlled group?