Questions from Federal Taxation

Q: Clint, your client, owns a life insurance policy on his

Clint, your client, owns a life insurance policy on his own life. He has paid $6,800 in premiums, and the cash surrender value of the policy is $30,000. Clint borrowed $30,000 from the insurance compa...

Q: Your friend Hui is an investor in blue coin, a virtual

Your friend Hui is an investor in blue coin, a virtual currency. Indicate whether and how she is subject to Federal income taxation in the following circumstances. a. Earns S 1,000 in blue coin from m...

Q: Determine Amos's gross income in each of the following cases.

Determine Amos's gross income in each of the following cases. a. In the current year, Amos purchased an automobile for $25,000. As part of the transaction, An1os received a $1,500 rebate from the manu...

Q: Mini, Inc., earns pretax book net income of $750

Mini, Inc., earns pretax book net income of $750,000 in 2018. Mini deducted $20,000 in bad debt expense for book purposes. This expense is not yet deductible for tax purposes. Mini records no other te...

Q: Using the facts of Problem 12, determine the 2018 end-

Using the facts of Problem 12, determine the 2018 end-of-year balance in Mini's deferred tax asset and deferred tax liability balance sheet accounts. Data from Problem 12: Mini, Inc., earns pretax b...

Q: Selma operates a contractor's supply store. She maintains her books using

Selma operates a contractor's supply store. She maintains her books using the cash method. Selma wants to know whether the accrual basis of accounting would be preferable for her business. At the end...

Q: Trip Garage, Inc. (459 Ellis Avenue, Harrisburg,

Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis Communications taxpayer that repairs automobiles. In late December 2018, the company repaired Samuel Mosley's car and ch...

Q: RoofCo reports total book income before taxes of $20 million and

RoofCo reports total book income before taxes of $20 million and a total tax expense of $8 million. FloorCo reports book income before taxes of $30 million and a total tax expense of $12 million. The...

Q: Roy decides to buy a personal residence, and he goes to

Roy decides to buy a personal residence, and he goes to the bank for a Decision Making $150,000 loan. The bank tells Roy that he can borrow the funds at 4% if his father will guarantee the debt. Roy's...

Q: Determine Hazel's Federal gross income from the following receipts for the year

Determine Hazel's Federal gross income from the following receipts for the year.