Questions from Federal Taxation

Q: a. What is a value-added tax and how does

a. What is a value-added tax and how does it work? b. Evaluate the rate structures of the two proposed taxes. Are they proportional, progressive, or regressive? c. What, if anything, is wrong with To...

Q: Why is a tax on real property used more often than a

Why is a tax on real property used more often than a tax on personal property?

Q: Explain how the related party construct and the arm's-length transaction

Explain how the related party construct and the arm's-length transaction concept interact.

Q: Why is the pay-as-you-go concept important

Why is the pay-as-you-go concept important to the successful operation of the income tax system? What other types of taxes are based on this concept?

Q: Chapter 1 discussed how gross income is equal to all income received

Chapter 1 discussed how gross income is equal to all income received, less exclusions. Which concepts form the basis for this calculation of gross income? Explain.

Q: You are a CPA who has been preparing tax returns for Sign

You are a CPA who has been preparing tax returns for Sign, Seal, and Deliver, a mid-size CPA Firm for the last 5 years. During the current year, you are assigned the individual return of a new client...

Q: Jerry and his wife, Joanie, own a successful concrete company

Jerry and his wife, Joanie, own a successful concrete company that is organized as a corporation. Jerry spends all his time running the company, whereas Joanie has a full-time job as a legal secretar...

Q: The Perry Development Partnership purchases 40 acres of land for $30

The Perry Development Partnership purchases 40 acres of land for $30,000. It spends $8,000 subdividing the land into 2-acre parcels and $17,000 to install a sewer line and utilities to each parcel....

Q: Ayah signs a contract to write a book for East Publishing Company

Ayah signs a contract to write a book for East Publishing Company in the current year. Under its terms, she receives a $5,000 advance against future royalty payments upon signing the contract. The c...

Q: Aretha is an executive vice president of Franklin, Inc. On

Aretha is an executive vice president of Franklin, Inc. On December 18, 2017, the Franklin, Inc., board of directors awards her a $20,000 bonus. Aretha asks Franklin's controller to delay processing...