Questions from Federal Taxation

Q: On August 2, 2018, Wendy purchased a new office building

On August 2, 2018, Wendy purchased a new office building for $3.8 million On October 1, 2018, she began to rent out office space in the building. On July 15, 2022, Wendy sold the office building. a. D...

Q: On Mark 25, 2018, Prascale Company purchases the rights to

On Mark 25, 2018, Prascale Company purchases the rights to a mineral interest for 8 million. At that time, the remaining recoverable units in the mineral interest are estimated to be 500,000 tons. If...

Q: On April 3, 2018, Terry purchased and placed in service

On April 3, 2018, Terry purchased and placed in service a building that cost $2 million. An appraisal determined that 25% of the total cost was attributed to the value of the land. The bottom floor of...

Q: On March 15, 2018, Helen purchased and placed in service

On March 15, 2018, Helen purchased and placed in service a new Escalade. The purchase price was $62,000, and the vehicle had a rating of 6,500 GVW. The vehicle was used 100% for business. a. Assuming...

Q: Sally purchased a new computer (5-year property) on

Sally purchased a new computer (5-year property) on June 1, 2018, for $4,000. Sally could use the computer 100% of the time in her business, or she could allow her family to use the computer as well....

Q: Dennis Harding is considering acquiring a new automobile that he will use

Dennis Harding is considering acquiring a new automobile that he will use 100% for business. The purchase price of the automobile would be $48,500. If Dennis leased the car for five years, the lease p...

Q: Oleander Corporation, a calendar year entity, begins business on March

Oleander Corporation, a calendar year entity, begins business on March 1, 2018. The corporation incurs startup expenditures of $64,000. If Oleander elects 195 treatment, determine the total amount of...

Q: Martha was considering starting a new business. During her preliminary investigation

Martha was considering starting a new business. During her preliminary investigation, related to the new venture, she incurred the following expenditures. Martha begins the business on July 1 of the...

Q: Kim works for a clothing manufacturer as a dress designer. During

Kim works for a clothing manufacturer as a dress designer. During 2018, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as fo...

Q: Monica travels from her office in Boston to Lisbon, Portugal,

Monica travels from her office in Boston to Lisbon, Portugal, on business. Her Decision Making absence of 13 days was spent as follows: a. For tax purposes, how many days has Monica spent on busines...