Questions from Federal Taxation

Q: Assume that Wrigley Juice is an S corporation owned equally by Henry

Assume that Wrigley Juice is an S corporation owned equally by Henry, Iris, and Jasmine. Prepare a memo explaining the effect of Wrigley’s results on Henry’s, Iris’s, and Jasmine’s tax returns Data...

Q: EndLand Company reports the following results for the current year:

EndLand Company reports the following results for the current year: Gross profit from sales………………………………………………………………$350,000 Dividends received (less than 20% ownership)………………………………40,000 Long-term ca...

Q: Return to the facts of problem 18. Determine the total tax

Return to the facts of problem 18. Determine the total tax liability for EndLand, Kira, and Justin for parts a, b, and c. Assume that Kira has net taxable income from other sources of $50,000, which...

Q: Fawn contributes undeveloped land with a basis of $15,000

Fawn contributes undeveloped land with a basis of $15,000 and a fair market value of $90,000 to the Deer Partnership for a 25% interest in the partnership. What is Fawn's share of the partnership's op...

Q: Binh has a 50% interest in the Lamonica Partnership with a

Binh has a 50% interest in the Lamonica Partnership with a basis of $10,000 at the end of the year before accounting for his share of the current year's losses. The partnership suffers ordinary losses...

Q: John and Joanne have 2 children, Joe, 16, and

John and Joanne have 2 children, Joe, 16, and Jamie, 4. John is self-employed, and Joanne works as a swimming coach for Local University. John's business is manufacturing Jaugernauts. Through the yea...

Q: For a number of years, Nina was a mechanical engineer for

For a number of years, Nina was a mechanical engineer for a chemical company. She always enjoyed working around her home in her spare time, doing necessary repairs and maintenance. However, she was a...

Q: On April 3, 2016, Arlene sells land that she holds

On April 3, 2016, Arlene sells land that she holds as an investment to a construction company. The deed conveying the land to the construction company contains a covenant restricting construction on...

Q: Alex and Jeff have differing views on the current tax system.

Alex and Jeff have differing views on the current tax system. Alex believes that any tax system that has two tax structures, a regular tax and an alternative minimum tax, is inefficient and inequitab...

Q: Lynn and Alicia are equal partners in a local bookstore. They

Lynn and Alicia are equal partners in a local bookstore. They have operated the bookstore for two years but have reported only a small profit. This year they anticipate that the bookstore will gener...