Questions from Federal Taxation

Q: The Viking Corporation has the following items of income for 2017:

The Viking Corporation has the following items of income for 2017: Operating income………………………………………………………$350,000 Dividend income (12%-owned corporations)…………………..15,000 Long term capital gains…………………...

Q: Charger, Inc., has the following items for the current year

Charger, Inc., has the following items for the current year: Net operating income ………………………………………….$130,000 Dividend income (50% owned corporation) …………….40,000 Charitable cash contributions………………………...

Q: Myrna operates a plumbing business as a sole proprietorship. During the

Myrna operates a plumbing business as a sole proprietorship. During the year she sells the business to Tonya for $175,000. The assets sold and the allocation of the purchase price are as follows:...

Q: Maurice, Lawrence and Kerwin own and operate a chain of sandwich

Maurice, Lawrence and Kerwin own and operate a chain of sandwich shops as a partnership. Maurice owns 40% and his basis in the partnership is $80,000. Lawrence, a 35% owner, has a basis of $50,000 an...

Q: The Boyle Brothers own and operate a microbrewery. The partnership has

The Boyle Brothers own and operate a microbrewery. The partnership has two equal partners, Ed and John. At the close of the current year John's basis in the partnership is $42,000, and Ed's basis is...

Q: As discussed in this chapter, planning for capital gains and losses

As discussed in this chapter, planning for capital gains and losses is an important aspect of tax practice. Use the Internet to find information that provides year end tax planning opportunities. Tra...

Q: The Hartford Group is a partnership owned and operated by June and

The Hartford Group is a partnership owned and operated by June and Joyce. June owns a 60% interest and her basis in the partnership is $33,000. Joyce owns a 40% interest, and her basis is $18,000....

Q: Machela, a single individual, owns all the stock in the

Machela, a single individual, owns all the stock in the Gordon Corporation, which reports taxable income of $55,000. The corporation distributes the $55,000 in earnings as a dividend. Machela also r...

Q: Dance Corporation distributes $150,000 in cash to its shareholders

Dance Corporation distributes $150,000 in cash to its shareholders during the current year. Accumulated earnings and profits are $25,000 at the beginning of the year. Current earnings and profits ar...

Q: Toy Corporation distributes $175,000 in cash ($1.

Toy Corporation distributes $175,000 in cash ($1.75 per share) when its current and accumulated earnings and profits are $40,000. What is the effect of the distribution for Bernice, who owns 500 shar...