Questions from Federal Taxation

Q: Joy opened a shop to sell concrete yard ornaments in 2013.

Joy opened a shop to sell concrete yard ornaments in 2013. She converted a building in front of her residence into a store. The fair market value of the building when she opened the store was $50,000...

Q: What are the two basic methods of accounting that may be used

What are the two basic methods of accounting that may be used by taxpayers? How do the two basic methods differ?

Q: Oliver Company obtains a patent by paying $15,000 on

Oliver Company obtains a patent by paying $15,000 on June 21 of this year. Identify the tax issue(s) posed by the facts presented. Determine the possible tax consequences of each issue that you ident...

Q: Dawkins Logging Company buys 400 acres of forest land for $50

Dawkins Logging Company buys 400 acres of forest land for $50,000. The purchase price is allocated as follows: $10,000 to the land and the remaining $40,000 to the timber. At the time of purchase,...

Q: Articles on tax topics are often useful in understanding the income tax

Articles on tax topics are often useful in understanding the income tax law. CPA firms and other organizations publish tax articles on the Internet. Using a search engine or one of the tax directory...

Q: Search the Internet for articles relating to the amortization of intangible assets

Search the Internet for articles relating to the amortization of intangible assets. Trace the process you used to find the article (search engine or tax directory used). Summarize the information fo...

Q: Your client purchases land that has been severely eroded. He plans

Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material. Prepare a memorandum discussing any cost recovery deductions that can b...

Q: How is the taxation of an alimony payment different from the taxation

How is the taxation of an alimony payment different from the taxation of a child support payment?

Q: In December, Hilga sells her German language translation business to Chia

In December, Hilga sells her German language translation business to Chia-Ching. The sales agreement includes a provision that for an extra $6,000, Hilga will not open another German language transla...

Q: Your client, Stone Mining Company, comes to you with a

Your client, Stone Mining Company, comes to you with a tax planning idea. This year's mining revenues are disappointing, but the company is very optimistic that next year's mining revenues will incre...