Questions from Federal Taxation

Q: Refer to problem 55. Yohanse used the warehouse for 4 years

Refer to problem 55. Yohanse used the warehouse for 4 years and sells it. During this period, he properly deducts a total of $25,000 in depreciation. What is Yohanse's gain or loss on the warehouse...

Q: Chanetra inherits land from her aunt, Tameka. Tameka's adjusted basis

Chanetra inherits land from her aunt, Tameka. Tameka's adjusted basis in the land was $150,000 and the fair market value at the date of her death was $200,000. Six months after Tameka's death, the l...

Q: Jesse's grandfather dies on April 13 of the current year. Jesse

Jesse's grandfather dies on April 13 of the current year. Jesse inherits the following property: a. What is Jesse's basis in the inherited property? b. What is Jesse's basis in the property if the...

Q: Taylor dies on February 19 of the current year. Among the

Taylor dies on February 19 of the current year. Among the assets in his estate are 500 shares of Dane Company preferred stock. Ten years earlier, Taylor paid $14 per share for the stock. Market val...

Q: Phong would like to begin planning her estate. She owns marketable

Phong would like to begin planning her estate. She owns marketable securities that cost $10,000 twelve years ago. The market value is $40,000. She wonders whether she should sell her securities and d...

Q: Return to the facts in problem 60. Assume that the securities

Return to the facts in problem 60. Assume that the securities have a fair market value of $2,000. What positive tax strategy exists in this situation? Explain. Data from Problem 60: Phong would like...

Q: Joe Bob is an employee of Rollo Corporation who receives a salary

Joe Bob is an employee of Rollo Corporation who receives a salary of $14,000 per month. How much Social Security tax will be withheld from Joe Bob's salary in a. March? b. November?

Q: Demetri starts a public accounting practice during the current year. He

Demetri starts a public accounting practice during the current year. He converts 10% of his home into an office. Demetri purchased the property four years ago for $100,000. The portion of the purch...

Q: Alexis purchases a duplex by paying $18,000 cash and

Alexis purchases a duplex by paying $18,000 cash and assuming the seller's $80,000 mortgage. She pays legal fees of $3,000 and spends $9,000 on painting and carpeting the 2 units before renting out 1...

Q: Daryl purchases land in 2013 at a cost of $65,

Daryl purchases land in 2013 at a cost of $65,000. In 2017, he sells the land for $100,000. a. How much gain or loss does Daryl realize on the sale of the land? b. Assume that the sales contract on t...