Questions from Federal Taxation

Q: Lanny is an owner of the Chasteen Partnership. He sells land

Lanny is an owner of the Chasteen Partnership. He sells land to the partnership for $40,000 for which he had paid $52,000. Discuss the treatment of the sale under the following assumptions: a. Lanny...

Q: Assume the same facts as in problem 25, except that Lanny

Assume the same facts as in problem 25, except that Lanny sells the land to the partnership for $60,000. He held the land for investment. Chasteen is a real estate company. How would your answers t...

Q: Tawana purchased real property in 2015 at a cost of $200

Tawana purchased real property in 2015 at a cost of $200,000. In 2017, she is experiencing cash-flow problems and sells the property for $220,000. The adjusted basis of the property is $185,000. Ide...

Q: Louis is the president and 40% owner of Adams Company.

Louis is the president and 40% owner of Adams Company. His basis in Adams at the beginning of the year is $8,000. Adams suffers a net operating loss of $15,000 during the current year. Louis receiv...

Q: Natrone pays $35,000 for stock in an S corporation

Natrone pays $35,000 for stock in an S corporation and receives shares equal to a 20% interest in the corporation in the current year. At the same time he pays $35,000 for a 20% interest in a general...

Q: The Boo Ball Corporation receives dividend income of $200,000

The Boo Ball Corporation receives dividend income of $200,000 from Flew Ball, a domestic corporation. Boo Ball owns 70% of Flew Ball. Boo Ball's net income from operations is $50,000. What is Boo Ba...

Q: The John Corporation suffers a $22,000 net loss from

The John Corporation suffers a $22,000 net loss from operations for the current year but receives $150,000 in dividend income from corporations in which it owns 50% of the stock. What is the dividends...

Q: The Bat Ball Corporation incurs a net loss from operations of $

The Bat Ball Corporation incurs a net loss from operations of $62,000 for the current year. Bat Ball receives $175,000 in cash dividends from 30% owned domestic corporations. What is the dividends re...

Q: Adele owns 60% of Trouble, Inc., a corporation.

Adele owns 60% of Trouble, Inc., a corporation. During the current annual accounting period, Trouble has an operating income of $19,000, dividend income from investments in stock of other corporation...

Q: Elvira owns 100% of the stock of Midnite Corporation, a

Elvira owns 100% of the stock of Midnite Corporation, a manufacturer of galobnotites. During the current year, Midnite has operating income of $50,000, dividend income of $16,000 from investments in o...