Questions from Federal Taxation

Q: Fox Corp., an S corporation, had an ordinary loss of

Fox Corp., an S corporation, had an ordinary loss of $36,500 for the year ended December 31, year 2. At January 1, year 2, Duffy owned 500A. of Fox's stock. Duffy held the stock for 40 days in year 2...

Q: Olinto, Inc., reports taxable income (before special deductions and

Olinto, Inc., reports taxable income (before special deductions and net operating loss deduction) of $92,000. Included in that amount is $12,000 interest and dividends income. Forty percent of Olinto'...

Q: In which of the following cases will Federal law prohibit a state

In which of the following cases will Federal law prohibit a state from imposing a tax on net income? a. The business has a retail outlet store in the state. b. The business has its corporate headquart...

Q: An S corporation has 30,000 shares of voting common stock

An S corporation has 30,000 shares of voting common stock and 20,000 shares of nonvoting common stock issued and outstanding. The S election can be revoked voluntarily with the consent of the sharehol...

Q: The Haas Corp., a calendar year S corporation, has two

The Haas Corp., a calendar year S corporation, has two equal shareholders. For the year ended December 31, year 6, Haas had net income of $60,000, which included $50,000 from operations and $10,000 fr...

Q: Rank the following items from the lowest to highest authority in the

Rank the following items from the lowest to highest authority in the Federal tax law system. a. Interpretive Regulation. b. Legislative Regulation. c. Letter ruling. d. Revenue Ruling. e. Internal...

Q: Lance H. and Wanda B. Dean are married and live

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a p...

Q: Parchment, Inc., is created with the following asset and liability

Parchment, Inc., is created with the following asset and liability contributions. Jake and Fran each receive 100 shares of Parchment common stock. a. Prepare a financial accounting balance sheet for...

Q: Assume that Parchment in (1) elects S corporation status at

Assume that Parchment in (1) elects S corporation status at the time of its creation. Respond to parts (a), (b), and (c).

Q: Assume that Parchment in (1) is a general partnership rather

Assume that Parchment in (1) is a general partnership rather than a corporation. Respond to parts (a), (b), and (c). Would your answer change if Parchment were an LLC that ''checked the box" to be tax...