Questions from Federal Taxation

Q: Hurst Corporation wants to provide child care for its employees. Because

Hurst Corporation wants to provide child care for its employees. Because Hurst does not have a suitable facility on its own premises, it rents a building for the center. The rent for the year totals...

Q: Willtem Corporation has total general business credits of $25,000

Willtem Corporation has total general business credits of $25,000. It has a net regular tax liability of $17,000 and its tentative alternative minimum tax is $13,000. What can Willtem deduct as its g...

Q: Determine the total amount of tax due and the amount of the

Determine the total amount of tax due and the amount of the alternative minimum tax in each of the following situations: a. Wilbur Corporation's regular tax liability is $180,000, and its tentative al...

Q: Stan purchases machinery costing $100,000 for use in his

Stan purchases machinery costing $100,000 for use in his business in 2017. The machinery is 7-year MACRS property and has an ADS life of 12 years. Prepare a depreciation schedule using the regular M...

Q: Assume that in problem 77, Stan sells the machinery in 2023

Assume that in problem 77, Stan sells the machinery in 2023 for $28,500. Determine the effect of the sale on Stan's regular taxable income and his alternative minimum taxable income in 2023. Data fr...

Q: Assume the same facts as in problem 87. In the next

Assume the same facts as in problem 87. In the next year, TAG distributes $5,000 to Logo. What are the tax effects of the distribution? Data from Problem 87: Logo Corporation, a domestic corporatio...

Q: William, Daniel, and Thomas are brothers who have decided to

William, Daniel, and Thomas are brothers who have decided to form an engineering firm. Although Thomas has an MBA degree and will function primarily as the firm’s financial expert, he has no formal t...

Q: Fred, age 50, plans to retire when he reaches age

Fred, age 50, plans to retire when he reaches age 65. He is considering investing in either an IRA or a Roth IRA. He plans to contribute $6,500 per year until he retires. He expects his marginal ta...

Q: What would be the general nature of Sec. 612? Sec

What would be the general nature of Sec. 612? Sec. 6601?

Q: Bernadero Corporation sells a construction crane with an adjusted basis of $

Bernadero Corporation sells a construction crane with an adjusted basis of $32,000 for $37,000. The corporation paid $50,000 for the crane. Identify the tax issue(s) posed by the facts presented. De...