Questions from Federal Taxation

Q: Stem Corp. bought a machine in February of year 7 for

Stem Corp. bought a machine in February of year 7 for $20,000. Then Stem bought furniture in November of year 7 for $30,000. Both machines were placed in service for business purposes in1mediately aft...

Q: Data, Inc., purchased and placed in service a $5

Data, Inc., purchased and placed in service a $5,000 computer on August 24, year 3. This is the only asset purchase during the year. Section 179 expensing was not elected. Using the excerpt of the MAC...

Q: Which of the following statements regarding passive activity losses is true?

Which of the following statements regarding passive activity losses is true? a. A net passive activity loss may be deducted against wages. b. Losses on rental property are always considered passive....

Q: Michael owns a rental house that generated a $10,000

Michael owns a rental house that generated a $10,000 Joss this year. Michael manages the rental property, but does not meet the standards for n1aterial participation. Michael is a college professor an...

Q: Celine has the following capital gain and loss transactions for 2018.

Celine has the following capital gain and loss transactions for 2018. After the capital gain and loss netting process, what is the amount and character of Celine's gain or loss?

Q: Elliott has the following capital gain and loss transactions for 2018.

Elliott has the following capital gain and loss transactions for 2018. After the capital gain and loss netting process, what is the amount and character of Elliott's gain or loss?

Q: Amy, Becky, and Chau form a business entity with each

Amy, Becky, and Chau form a business entity with each contributing the following. Their ownership percentages will be as follows. Becky's land has a $20,000 mortgage that is assumed by the entity....

Q: Renata Corporation purchased equipment in 2016 for $180,000 and

Renata Corporation purchased equipment in 2016 for $180,000 and has taken $83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2018 for $110,000. What is the amount and cha...

Q: Jacob purchased business equipment for $56,000 in 2015 and

Jacob purchased business equipment for $56,000 in 2015 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2018 for $26,000. What is the amount and character of Jacob's g...

Q: Sissie owns two items of business equipment. Both were purchased in

Sissie owns two items of business equipment. Both were purchased in 2014 for $100,000, both have a 7-year MACRS recovery period, and both have an adjusted basis of $37,490. Sissie is considering selli...