Questions from Federal Taxation

Q: Junior bought some stock several years ago for $8,000

Junior bought some stock several years ago for $8,000. He is thinking of selling and has 2 offers. His broker told him he could sell the stock for $8,300 and would have to pay a $600 commission, for...

Q: Henrietta is the president and sole shareholder of Clutter Corporation. In

Henrietta is the president and sole shareholder of Clutter Corporation. In 2014, Henrietta transferred ownership of her personal residence to the corporation. As part of the transfer, Clutter Corpor...

Q: Milton is an inventor who has also written several successful mystery novels

Milton is an inventor who has also written several successful mystery novels. Because he didn't really need the income from the novels, Milton wrote them under an assumed name and had the royalties pa...

Q: The estate tax is a tax on the value of property transferred

The estate tax is a tax on the value of property transferred at death. Why is payment of the estate tax not a common event?

Q: Determine whether the taxpayer in each of the following situations has a

Determine whether the taxpayer in each of the following situations has a claim of right to the income received: a. Sulley's Spa Spot sells hot tubs that have a 2-year warranty. The warranty provides...

Q: Consider the following two situations. Although they are similar, their

Consider the following two situations. Although they are similar, their treatments are exactly opposite. Identify the concept underlying both treatments, and explain why the concept treats the two s...

Q: Determine whether the taxpayer in each of the following situations is in

Determine whether the taxpayer in each of the following situations is in constructive receipt of income. If not, explain when the income will be constructively received. a. Norman is president of Wri...

Q: Using the income concepts presented in this chapter, discuss whether the

Using the income concepts presented in this chapter, discuss whether the taxpayer has realized income in each of the following situations: a. Adco Corporation pays the health insurance premiums for al...

Q: Nina leases a building to Downtown Computer Systems for $5,

Nina leases a building to Downtown Computer Systems for $5,000 per month under a 5-year lease. The terms of the lease provide that any improvements to the building made by Downtown revert to Nina upo...

Q: For each tax treatment described, determine the applicable income tax concept

For each tax treatment described, determine the applicable income tax concept(s), and explain how it forms the basis for the treatment: a. Jackson owned coupon bonds with detachable interest coupons....