Questions from Federal Taxation

Q: Maple, Inc., is an S corporation with a single shareholder

Maple, Inc., is an S corporation with a single shareholder, Bob Maple. Bob believes that his stock basis in the entity is $50,000, but he has lost some of the records to substantiate this amount. Mapl...

Q: At the beginning of the year, Ann and Becky own equally

At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year (not a leap year). On the 189th day of the y...

Q: In Problem 44, how much of the Whitman loss belongs to

In Problem 44, how much of the Whitman loss belongs to Ann and Becky? Becky’s stock basis is $41,300. Facts from Problem 44 At the beginning of the year, Ann and Becky own equally all of the stock of...

Q: Samuel Reese sold 1,000 shares of his stock in Maroon

Samuel Reese sold 1,000 shares of his stock in Maroon, Inc., an S corporation. He sold the stock for $15,700 after he had owned it for six years. Samuel had paid $141,250 for the stock, which was issu...

Q: Blue is the owner of all of the shares of an S

Blue is the owner of all of the shares of an S corporation, and Blue is considering \receiving a salary of $110,000 from the business. She will pay the \7.65% FICA taxes on the salary, and the S corpo...

Q: Green Corporation’s assets are valued at $920,000 after payment

Green Corporation’s assets are valued at $920,000 after payment of all corporate debts, except for $134,000 of taxes payable on net gains it recognized on the liquidation. Bruno, an individual and the...

Q: Orange, Inc., a calendar year corporation in Clemson, South

Orange, Inc., a calendar year corporation in Clemson, South Carolina, elects S corporation status for 2017. The company generated a $74,000 NOL in 2016 and another NOL of $43,000 in 2017. Orange recor...

Q: Tiger, Inc., a calendar year S corporation, is owned

Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On September...

Q: If the beginning balance in Swan, Inc.’s OAA is

If the beginning balance in Swan, Inc.’s OAA is $6,700 and the following transactions occur, what is Swan’s ending OAA balance? Depreciation recapture income………………………………………..$ 21,600 Payroll tax pena...

Q: Alice owns 100 percent of Medical Data, a C corporation,

Alice owns 100 percent of Medical Data, a C corporation, and 100 percent of Your Realtors, an S corporation. She worked full-time for Medical Data (i.e., she materially participated in the entity), bu...