Questions from Federal Taxation

Q: Rhoda owns an electronics store that is burglarized during the current year

Rhoda owns an electronics store that is burglarized during the current year. The burglars destroy the point-of-sale terminal and steal $380 from the cash drawer. The point-of-sale terminal was purch...

Q: Wilbur owns a 25% interest in the Talking Horse Corporation,

Wilbur owns a 25% interest in the Talking Horse Corporation, which is organized as an S corporation. His basis in the property is $15,000. For the year, Talking Horse reports an operating loss of $2...

Q: During 2017, Yoko has total capital gains of $8,

During 2017, Yoko has total capital gains of $8,000 and total capital losses of $16,000. a. What is the effect of the capital gains and losses on Yoko's 2017 taxable income? Explain. b. Assume that i...

Q: Goldie sells 600 shares of Bear Corporation stock for $9,

Goldie sells 600 shares of Bear Corporation stock for $9,000 on December 14, 2017. She paid $27,000 for the stock in February 2014. a. Assuming that Goldie has no other capital asset transactions i...

Q: Labrador Corporation has total capital gains of $18,000 and

Labrador Corporation has total capital gains of $18,000 and total capital losses of $35,000 in 2017. Randy owns 25% of Labrador's outstanding stock. What is the effect on Labrador's and Randy's 2017...

Q: Bongo Corporation is incorporated in 2015. It has no capital asset

Bongo Corporation is incorporated in 2015. It has no capital asset transactions in 2015. From 2016 through 2019, Bongo has the following capital gains and losses: Assuming that Bongo's marginal tax...

Q: Newcastle Corporation was incorporated in 2016. For the years 2016 through

Newcastle Corporation was incorporated in 2016. For the years 2016 through 2018, Newcastle has the following net capital gain or loss. If Newcastle is in the 34% marginal tax bracket for each of the...

Q: Reba's 2017 income tax calculation is as follows: Gross

Reba's 2017 income tax calculation is as follows: Gross income……………………………………………………………………..$ 120,000 Deductions for adjusted gross income…………………………………….(3,000) Adjusted gross income…………………………………………………...

Q: Sonya, who is single, owns 20,000 shares of

Sonya, who is single, owns 20,000 shares of Malthouse Corporation stock. She acquired the stock in 2014 for $75,000. On August 12, 2017, Sonya’s father tells her of a rumor that Malthouse will file...

Q: 1. Lynn and Laurie use the cash method of accounting and

1. Lynn and Laurie use the cash method of accounting and file their return on a calendar-year basis. Unless otherwise stated, assume that the Norris’ want to minimize the current yea...