Questions from Federal Taxation

Q: Kai, a cash basis taxpayer, is a 75% owner

Kai, a cash basis taxpayer, is a 75% owner and president of Finnigan Fish Market. Finnigan, an S corporation, uses the accrual method of accounting. On December 28, 2017, Finnigan accrues a bonus of $...

Q: Lonnie owns 100% of Quality Company's common stock. Lonnie,

Lonnie owns 100% of Quality Company's common stock. Lonnie, the president of Quality, is a cash basis taxpayer. Quality is short of cash as of December 31, 2017, the close of its tax year. As a res...

Q: During the current year, Covino Construction makes $5,000

During the current year, Covino Construction makes $5,000 in political contributions to ten political candidates. What amount can Covino deduct for financial accounting purposes? for tax purposes?

Q: Martin Corporation is an accrual basis taxpayer that manufactures cellular phones.

Martin Corporation is an accrual basis taxpayer that manufactures cellular phones. The company provides a 5-year limited warranty on its phones and estimates that warranty expenses will be 1.5% of sa...

Q: Alexandra is a veterinarian employed by Fast Vet Services. Susan is

Alexandra is a veterinarian employed by Fast Vet Services. Susan is a self-employed veterinarian. During the current year, Alexandra and Susan have the same amounts of income and deductions. Why mi...

Q: Discuss how an individual would deduct each of the following expenditures.

Discuss how an individual would deduct each of the following expenditures. If more than one treatment is possible, discuss the circumstances under which each type of deduction would be obtained: a. A...

Q: Using the information below, prepare a spreadsheet that will calculate an

Using the information below, prepare a spreadsheet that will calculate an individual's taxable income. The spreadsheet should be flexible enough to accommodate single and married taxpayers as well as...

Q: Determine how each of the following expenses would be deducted for tax

Determine how each of the following expenses would be deducted for tax purposes. If the expense is not deductible, explain why not. a. Chander paid $500 in interest on a loan he used to purchase equip...

Q: What effect does an asset's adjusted basis have in determining the gain

What effect does an asset's adjusted basis have in determining the gain or loss realized upon its sale?

Q: Andy, Azim, and Ashwin operate the Triple-A Steak

Andy, Azim, and Ashwin operate the Triple-A Steak House, a popular restaurant and bar. The three, who have been friends since childhood, are equal partners in the establishment. For the year, Triple...