Questions from Federal Taxation

Q: The following information is from the financial records of the Adham Corporation

The following information is from the financial records of the Adham Corporation at the end of the year: Accounts receivable…………………………..$ 450,000 Allowance for bad debts account………….(34,000) Net acco...

Q: In addition to being an employee of Rock Hard Roofing Material,

In addition to being an employee of Rock Hard Roofing Material, Lou owns 10% of the company's common stock. Rock Hard falls on hard times in 2016. To forestall bankruptcy, Rock Hard's employees and...

Q: The Cavanaugh Corporation owns the licensing rights to the Mississippi Marauders hockey

The Cavanaugh Corporation owns the licensing rights to the Mississippi Marauders hockey apparel. For 2017, Cavanaugh has gross receipts from qualified production activities of $6,000,000. The cost o...

Q: The Rollins Group produces training corporate training videos. It operates as

The Rollins Group produces training corporate training videos. It operates as a sole proprietorship and is 100% owned by Scott Rollins. For 2017, Rollins has gross receipts from qualified production...

Q: KOM pays the following insurance premiums during 2017:

KOM pays the following insurance premiums during 2017: Auto accident and liability insurance: Paid 1/1/17 Coverage period 1/1/17 - 12/31/17…………………..$3,500 Fire, storm,...

Q: For each of the following situations, state whether the expense related

For each of the following situations, state whether the expense related to the transaction can be deducted as an insurance expense: a. Baker Company pays the insurance premium to provide each of its e...

Q: State whether the following taxes are allowed as a current deduction for

State whether the following taxes are allowed as a current deduction for taxes paid by a business: a. Sales tax on the purchase of a desk b. State and local income, real estate, and personal property...

Q: Martin receives the following tax bills, related to a rental dwelling

Martin receives the following tax bills, related to a rental dwelling, from the county treasurer. Special assessment for installing sidewalks and streets……………………… 12,000 Real property ta...

Q: The Kimpton Corporation pays the following taxes during 2017:

The Kimpton Corporation pays the following taxes during 2017: Federal taxes withheld from employees……………………………….$26,000 State taxes withheld from employees …………………………………………9,000 Social Security withh...

Q: Eric is a self-employed financial consultant. During the current

Eric is a self-employed financial consultant. During the current year, Eric's net self-employment income is $160,000. What is Eric's self-employment tax?