Questions from Federal Taxation

Q: Beta Corporation, an S corporation with one shareholder, incurred the

Beta Corporation, an S corporation with one shareholder, incurred the following items: At the beginning of Year 1, the shareholder’s stock basis was $20,000, and her debt basis was...

Q: Carl Carson, a single taxpayer, owns 100% of Delta

Carl Carson, a single taxpayer, owns 100% of Delta Corporation. During 2017, Delta reports $150,000 of taxable income. Carl reports no income other than that earned from Delta, and Carl claims the sta...

Q: Voyles Corporation, a calendar year taxpayer formed five years ago,

Voyles Corporation, a calendar year taxpayer formed five years ago, desires to make an S election beginning in 2017. Sue and Andrea each own one-half of the Voyles stock. a. How does Voyles make the...

Q: Orlando Corporation, a calendar year taxpayer, has been an S

Orlando Corporation, a calendar year taxpayer, has been an S corporation for several years. On July 9, 2017, Orlando authorizes a second class of nonvoting preferred stock that pays a 10% annual divid...

Q: What is a publicly traded partnership? Are all publicly traded partnerships

What is a publicly traded partnership? Are all publicly traded partnerships taxed as corporations?

Q: Tango Corporation, a calendar year taxpayer, has been an S

Tango Corporation, a calendar year taxpayer, has been an S corporation for several years. Tango’s business activities have become very profitable in recent years. On June 16, 2017, its sole shareholde...

Q: Peter and his wife, Alice, own all the stock of

Peter and his wife, Alice, own all the stock of Galleon Corporation. Galleon made its S election 12 years ago. Peter and Alice sold one-half their Galleon stock to a partnership owned by Rob and Susan...

Q: Indicate in each of the following independent situations whether the taxpayer can

Indicate in each of the following independent situations whether the taxpayer can accomplish what is proposed. Provide adequate authority for your answer including any special elections that are neede...

Q: Oliver organized North Corporation 15 years ago. The corporation made an

Oliver organized North Corporation 15 years ago. The corporation made an S election last year after it accumulated $60,000 of E&P as a C corporation. As of December 31 of the current year, the corpora...

Q: Theta Corporation formed 15 years ago. In its first year,

Theta Corporation formed 15 years ago. In its first year, it elected to use the cash method of accounting and adopted a calendar year as its tax year. It made an S election on August 15 of last year,...