Questions from Federal Taxation

Q: Phoebe opens a bait delivery service during the current year. In

Phoebe opens a bait delivery service during the current year. In starting up the business, she decides to use her personal truck as a delivery vehicle. She had paid $16,000 for the truck, which was...

Q: On January 5, 2017, Henry purchases 500 shares of Wichmann

On January 5, 2017, Henry purchases 500 shares of Wichmann, Inc., common stock at a cost of $24,700. On April 1, 2017, he purchases an additional 300 shares for $19,500. On November 13, 2017, Wichma...

Q: On September 5 of last year, Edwina purchases 100 shares of

On September 5 of last year, Edwina purchases 100 shares of Atlantis Corporation common stock for $5,000. In December of the current year, she receives a nontaxable stock dividend of 10 shares of pre...

Q: Clarece has the option of receiving 2 shares of common stock as

Clarece has the option of receiving 2 shares of common stock as a stock dividend on the 10 shares of Ramble Company common stock that she owns. She paid $30 per share for her 10 shares. The common s...

Q: Eric owns 600 shares of Razor, Inc., stock for which

Eric owns 600 shares of Razor, Inc., stock for which he paid $3,500 in 2013. On December 14, 2017, he sells the 600 shares for $4 per share and pays a commission of $200 on the sale. On January 3, 201...

Q: On November 14, 2017, Noel sells 2,000 shares

On November 14, 2017, Noel sells 2,000 shares of Marker, Inc., stock for $6,000. He had purchased the stock 2 years earlier for $10,000. Because the price of the stock continued to drop, Noel purcha...

Q: Lynn bought 100 shares of Filidelphia Corporation stock for $10,

Lynn bought 100 shares of Filidelphia Corporation stock for $10,000 three years ago. On December 24, she sells 50 shares for $4,000. She plans to buy 100 more shares of Filidelphia stock for $7,000 o...

Q: For each of the following assets, determine whether it is personal

For each of the following assets, determine whether it is personal property, real property, intangible property, or personal use property: a. Reagan gave her mother a new set of golf clubs for Christm...

Q: Bonnie is married and has 1 child. She owns Bonnie's Rib

Bonnie is married and has 1 child. She owns Bonnie's Rib Joint, which produces a taxable income of approximately $120,000 per year. a. Assume that Bonnie's taxable income is $40,000 without consideri...

Q: For each of the following assets, determine whether it is personal

For each of the following assets, determine whether it is personal property, real property, intangible property, or personal use property: a. Woodrow spent $5,380 on trees and shrubs for use in his l...