Questions from Federal Taxation

Q: At the beginning of the year, Teal Corporation had accumulated E

At the beginning of the year, Teal Corporation had accumulated E & P of $210,000. On March 30, Teal sold an asset at a loss of $200,000. For the calendar year, Teal incurred a deficit in current E & P...

Q: Torsten owns 100% of Taupe Corporation (a calendar year corporation

Torsten owns 100% of Taupe Corporation (a calendar year corporation), which had net operating income of $420,000 and long-term capital gain of $30,000 in the current year. Torsten has significant inco...

Q: Assume in Problem 32 that the property Bob transfers to Robin Corporation

Assume in Problem 32 that the property Bob transfers to Robin Corporation is worth $15,000 (basis of $3,000) and that his services in organizing the corporation are worth $165,000. What are the tax co...

Q: Kim is an employee of Azure Corporation. In the current year

Kim is an employee of Azure Corporation. In the current year, she receives a cash salary of $30,000 and also is given IO shares of Azure stock for services she renders to the corporation. The shares i...

Q: Juan, an attorney, is the sole shareholder of Carmine Corporation

Juan, an attorney, is the sole shareholder of Carmine Corporation, a C corporation and professional association. The corporation paid Juan a salary of $336,000 during its fiscal year ending September...

Q: Sean, a shareholder of Crimson Corporation, is single and in

Sean, a shareholder of Crimson Corporation, is single and in the 35% tax bracket. This year, he receives a $7,000 qualified dividend fron1 Crim5on. Sean has investment interest expense of $16,000 and...

Q: Jonathan owns 100% of Lemon Company (a calendar year entity

Jonathan owns 100% of Lemon Company (a calendar year entity). In the current year, Lemon recognizes a long-term capital gain of $70,000 and no other income (or loss). Jonathan is in the 37% tax bracke...

Q: In the current year, Tanager Corporation (a calendar year C

In the current year, Tanager Corporation (a calendar year C corporation) had operating incon1e of $480,000 and operating expenses of $390,000. In addition, Tanager had a long-term capital gain of $55,...

Q: Apricot Corporation distributes property ($125,000 basis and $150

Apricot Corporation distributes property ($125,000 basis and $150,000 fair market value) to it5 sole shareholder, Ellie. The property is subject to a liability of $200,000, which Ellie assumes. Aprico...

Q: The TV show TMZ spoke with Larry Edema from Michigan, who

The TV show TMZ spoke with Larry Edema from Michigan, who Communications was selected to be in the audience for Oprah's big giveaway: a free trip to Australia. Supposedly, Winfrey had a certified publ...