Questions from Federal Taxation

Q: Return to the facts of problem 64. On November 30,

Return to the facts of problem 64. On November 30, 2018, when the fair market value of the stock is $30 he sells the stock. Determine the tax consequences to both Albert and the Beaconsfield Corpora...

Q: On May 10, 2017, Somerton Inc., grants Louise a

On May 10, 2017, Somerton Inc., grants Louise a nonqualified stock option to acquire 700 shares of the company’s stock for $11 per share. The fair market value of the stock on the date of grant is $1...

Q: Return to the facts of problem 66. If the stock is

Return to the facts of problem 66. If the stock is subject to substantial restrictions, what are the tax consequences for both Louise and Somerton on the date Louise is granted the stock option and t...

Q: Return to the facts of problem 67. Assume that Louise sells

Return to the facts of problem 67. Assume that Louise sells the stock on October 31, 2018 for $35 per share. Determine the tax consequences for Louise and Somerton on the date of sale. Data from Pr...

Q: On July 1, 2017, Howard is granted the right to

On July 1, 2017, Howard is granted the right to acquire 500 shares of the Matoney Corporation for $15 per share. The option qualifies under the company’s incentive stock option plan. The current fa...

Q: Sonya owns 60% and her sister Karen owns 40% of

Sonya owns 60% and her sister Karen owns 40% of the Tanglewood Group. They inherited their ownership from their mother who died in 2016. Sonya is the president and CFO of the corporation and receive...

Q: Clinton Corporation spent $800,000 on qualified research activities during

Clinton Corporation spent $800,000 on qualified research activities during the current year. Clinton's fixed base percentage is 10%, and its annual average gross receipts for the four preceding years...

Q: Lavinia owns an advertising agency. In February 2017, Lavinia purchases

Lavinia owns an advertising agency. In February 2017, Lavinia purchases for $32,000 a building that was originally placed in service in 1922. Lavinia spends $65,000 rehabilitating the building for use...

Q: Jammer, Inc., sells a building for $180,000

Jammer, Inc., sells a building for $180,000. The company paid $135,000 for the building four years earlier and had taken $12,000 in depreciation on it up to the date of the sale. Identify the tax iss...

Q: Return to the facts of problem 72. Assume that Lavinia sells

Return to the facts of problem 72. Assume that Lavinia sells the building in April 2020. a. How much of the older buildings tax credit must Lavinia recapture? b. Assuming the building qualified for b...