Questions from Federal Taxation

Q: Randall owns an office building (adjusted basis of $250,

Randall owns an office building (adjusted basis of $250,000) that he has been Critical Thinking renting to a group of physicians. During negotiations over a new seven-year Ethics and Equity lease, the...

Q: Howard's roadside vegetable stand (adjusted basis of $275,000

Howard's roadside vegetable stand (adjusted basis of $275,000) is destroyed by a tractor-trailer accident. He receives insurance proceeds of $240,000 ($300,000 fair market value - $60,000 coinsurance)...

Q: For each of the following involuntary conversions, indicate whether the property

For each of the following involuntary conversions, indicate whether the property acquired qualifies as replacement property, the recognized gain, and the basis for the property acquired. a. Frank owns...

Q: Mitchell, a calendar year taxpayer, is the sole proprietor of

Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 12, 2018, state authorities notify...

Q: Edith's warehouse (adjusted basis of $450,000) is

Edith's warehouse (adjusted basis of $450,000) is destroyed by a hurricane in October 2018. Edith, a calendar year taxpayer, receives insurance proceeds of $525,000 in January 2019. Calculate Edith's...

Q: Prance, in Problem 3, reports $600,000 of

Prance, in Problem 3, reports $600,000 of pretax book net income in 2019. Prance's book depreciation exceeds tax depreciation that year by $20,000. Prance reports no other temporary or permanent book-...

Q: Yancy's personal residence is condemned as part of an urban renewal project

Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $480,000. He receives conden1nation proceeds of $460,000 and invests the proceeds i...

Q: Kevin purchases 1,000 shares of Bluebird Corporation stock on October

Kevin purchases 1,000 shares of Bluebird Corporation stock on October 3, 2018, for $300,000. On December 12, 2018, Kevin purchases an additional 750 shares of Bluebird stock for $210,000. According to...

Q: Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000

Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2018. The assets of the business are as follows: a. Calculate Agnes's realized and recognized gain. b. Determine...

Q: Al is a physician who conducts his practice as a sole proprietor

Al is a physician who conducts his practice as a sole proprietor. During 2018, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2017. At...