Questions from Federal Taxation

Q: The trend in state income taxation is to move to an apportionment

The trend in state income taxation is to move to an apportionment formula that places extra weight on the sales factor. Several states now use sales-factor-only apportionment. Explain why this develop...

Q: When taxes are "too high," taxpayers start to cheat on

When taxes are "too high," taxpayers start to cheat on their taxes and dangerous consequences can result. Evaluate this statement. Give at least two examples to illustrate your conclusions.

Q: Comn1ent on these statements. a. The tax law is

Comn1ent on these statements. a. The tax law is created and administered in the same way as other Federal provisions. b. Most taxpayers find it too expensive and time-consuming to sue the government i...

Q: The exclusion of state and local bond interest from Federal income tax

The exclusion of state and local bond interest from Federal income tax often is criticized as creating a tax haven for the wealthy. Critics, however, often fail to take into account the effect of n1ar...

Q: Sparrow Corporation is considering the acquisition of an asset for use in

Sparrow Corporation is considering the acquisition of an asset for use in it5 business over the next five years. However, Sparrow must decide whether it would be better served by leasing the asset or...

Q: Marketplace, Inc., has recognized over time that a certain percentage

Marketplace, Inc., has recognized over time that a certain percentage of its customer accounts receivable will not be collected. To ensure the appropriate matching of revenues and expenditures in its...

Q: With which of the two perspectives to business forms, conduit or

With which of the two perspectives to business forms, conduit or entity, is each of the following most consistent' a. Limited liability for the entity's owners. b. Unlimited life for the entity. c. T...

Q: Lark Corporation is considering the acquisition of an asset for use in

Lark Corporation is considering the acquisition of an asset for use in its business over the next five years. However, Lark must decide whether it would be better served by leasing the asset or buying...

Q: Wayside Fruit Company is a sole proprietorship owned by Neil Stephenson.

Wayside Fruit Company is a sole proprietorship owned by Neil Stephenson. The company's records reflect the following: Compute the net income before tax for book purposes and the amount of taxable in...

Q: In April of the current year, Blue Corporation purchased an asset

In April of the current year, Blue Corporation purchased an asset to be used in its manufacturing operations for $100,000. Blue's management expects the asset to ratably provide valuable services in t...