Questions from Federal Taxation

Q: John is single and has $74,000 income from his

John is single and has $74,000 income from his job at Lawndale Ice Cream Company. He wants to invest $150 a month in an IRA but is not sure which type he qualifies for and whether this would be a bet...

Q: Lisa works full time at the Snowden Corporation as a manager in

Lisa works full time at the Snowden Corporation as a manager in quality control. She is trying to get her employer to initiate a retirement program for all Snowden employees who make more than $80,00...

Q: The Schwarzbach Corporation manufactures metal fasteners at a cost of 55 cents

The Schwarzbach Corporation manufactures metal fasteners at a cost of 55 cents per fastener and sells them to wholesalers for 60 cents each. During the year, it establishes a 100% owned CFC in Portug...

Q: Carter owns 1,200 shares of Echo Corporation stock. He

Carter owns 1,200 shares of Echo Corporation stock. He purchased 400 shares of the stock on December 23, 2015 for $48,000, and the other 800 shares on October 31, 2016, for $84,000. On August 14, 20...

Q: Alice and Frank had the following items on their current-year

Alice and Frank had the following items on their current-year tax return: Determine the amount of the adjustments that Alice and Frank will have to make in computing their alternative minimum tax....

Q: Joan and Matthew are married, have two children, and report

Joan and Matthew are married, have two children, and report the following items on their current year’s tax return: Determine Joan and Matthew's regular tax liability and, if appli...

Q: Pauline is considering investing in bonds. Her broker has given her

Pauline is considering investing in bonds. Her broker has given her several options to consider. The first option is to invest in city bonds with an interest rate of 6%. The second option involves...

Q: Determine the AMT exemption amount for each of the following taxpayers:

Determine the AMT exemption amount for each of the following taxpayers: a. Nominal Corporation has an alternative minimum taxable income of $140,000. b. Janine is a single individual with an alternati...

Q: Bivona Corporation forms Jarvis Corporation in the country of Simants. Bivona

Bivona Corporation forms Jarvis Corporation in the country of Simants. Bivona owns 90% of Jarvis’ voting stock and 30% of its preferred stock. The remaining Jarvis stock is owned by citizens of Sima...

Q: Stanton Technology owns 100% of Goldman Corporation, a controlled foreign

Stanton Technology owns 100% of Goldman Corporation, a controlled foreign corporation. Goldman’s taxable income from its manufacturing operations is $3.0 million and it does not pay a dividend during...