Questions from Federal Taxation

Q: Define the terms temporary difference and permanent difference as they pertain to

Define the terms temporary difference and permanent difference as they pertain to the financial reporting of income tax expenses. Describe how these two book-tax differences affect the gap between boo...

Q: Determine whether the following expenditures by Cuckoo Corporation are organizational expenditures,

Determine whether the following expenditures by Cuckoo Corporation are organizational expenditures, startup expenditures, or neither. a. Legal expenses incurred for drafting the corporate charter and...

Q: In the current year, Plum, Inc., a closely held

In the current year, Plum, Inc., a closely held C corporation, has $410,000 of net active income, $20,000 of portfolio income, and a $75,000 passive activity loss. What is Plum’s taxable income for th...

Q: Joseph Thompson is president and sole shareholder of Jay Corporation. In

Joseph Thompson is president and sole shareholder of Jay Corporation. In December 2017, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University...

Q: Bernadette Rosen, a longtime client of yours, is an architect

Bernadette Rosen, a longtime client of yours, is an architect and the president of the local Rotary chapter. To keep up to date with the latest developments in her profession, she attends continuing e...

Q: In 2017, Gray Corporation, a calendar year C corporation,

In 2017, Gray Corporation, a calendar year C corporation, has a $75,000 charitable contribution carryover from a gift made in 2012. Gray is contemplating a gift of land to a qualified charity in eithe...

Q: Dan Simms is the president and sole shareholder of Simms Corporation,

Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121. Dan plans for the corporation to make a charitable contribution to the University of Washi...

Q: White Corporation, a calendar year C corporation, manufactures plumbing fixtures

White Corporation, a calendar year C corporation, manufactures plumbing fixtures. For the current year, White has taxable income [before the domestic production activities deduction (DPAD)] of $900,00...

Q: Kevin purchases 1,000 shares of Bluebird Corporation stock on October

Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2017, for $300,000. On December 12, 2017, Kevin purchases an additional 750 shares of Bluebird stock for $210,000. According to...

Q: Keshara has the following net § 1231 results for each of the

Keshara has the following net § 1231 results for each of the years shown. What would be the nature of the net gains in 2016 and 2017?