Questions from Federal Taxation

Q: Bailey Construction Company purchases a bulldozer on December 20, 2017.

Bailey Construction Company purchases a bulldozer on December 20, 2017. An ice storm delays delivery until December 24. Because of the holidays, the equipment is not used until January 2. Identify t...

Q: Gates, Inc., purchases a painting by a 16th-century

Gates, Inc., purchases a painting by a 16th-century Italian artist and displays it in the corporate headquarters. Identify the tax issue(s) posed by the facts presented. Determine the possible tax co...

Q: During 2017, Schottenheim Corporation buys laptop computers and desktop computers to

During 2017, Schottenheim Corporation buys laptop computers and desktop computers to use in its general sales offices. Schottenheim buys laptops for $42,000 on March 29, additional laptops for $18,00...

Q: : GM Corporation purchases equipment costing $18,000 and wants

GM Corporation purchases equipment costing $18,000 and wants to claim the maximum deduction possible for this expenditure. Identify the tax issue(s) posed by the facts presented. Determine the possi...

Q: What is the effect of the capital recovery concept on income recognition

What is the effect of the capital recovery concept on income recognition?

Q: Jason is transferred to another city to work and is unable to

Jason is transferred to another city to work and is unable to sell his house. He rents out the house until it is sold. Determine the possible tax consequences of each issue that you identify.

Q: In 2017, Terrell, Inc., purchases machinery costing $2

In 2017, Terrell, Inc., purchases machinery costing $2,058,000. Its 2017 taxable income before considering the Section 179 deduction is $490,000. Assume that Terrell elects not to claim bonus deprec...

Q: In 2017, Theo purchases $16,000 of Section 179

In 2017, Theo purchases $16,000 of Section 179 property for use in his delivery business. During 2017, he has $12,000 in taxable income from his business. Assume that Theo elects not to claim bonus...

Q: During 2017, Belk Corporation purchases $70,000-worth

During 2017, Belk Corporation purchases $70,000-worth of equipment for use in its business. Belk's current taxable income before considering the Section 179 deduction is $26,000. Assume that Belk ele...

Q: How much taxable should each of the following taxpayers report?

How much taxable should each of the following taxpayers report? a. Kimo builds custom surfboards. During the current year, his total revenues are $90,000, and he incurs $30,000 in expenses. Includ...