Questions from Federal Taxation

Q: Tyler and Travis Best are brothers and are equal shareholders in Maize

Tyler and Travis Best are brothers and are equal shareholders in Maize Corporation, a calendar year C corporation. In 2018, they incurred travel and transportation expenses on behalf of Maize Corporat...

Q: During 2018, Jayden Steele received a distribution of $24,

During 2018, Jayden Steele received a distribution of $24,000 on stock he owns in Razorbill Corporation. He had planned to report this amount as dividend income until he talked to his father-in-law, J...

Q: Scott and Brooke are the sole shareholders of Tanager Company, a

Scott and Brooke are the sole shareholders of Tanager Company, a calendar year Subchapter S corporation. After several loss years, in December 2018, Tanager is forced to borrow $300,000 for working ca...

Q: To report its transactions for the year, a partnership must file

To report its transactions for the year, a partnership must file a Form 1065 with the IRS a. When is this return due? b. As is the case with individuals and corporations, can a partnership obtain an a...

Q: Murray reported to the Environmental Protection Agency that his employer was illegally

Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Murray's employer was fined. In retaliation, Murray's...

Q: Can a Tax Court Small Case Decision be treated as a precedent

Can a Tax Court Small Case Decision be treated as a precedent for other cases? Explain.

Q: John and Janet Baker are husband and wife and maintain a household

John and Janet Baker are husband and wife and maintain a household in which the following persons live: Calvin and Florence Carter and Darin, Andrea, and Morgan Baker. • Calvin and Florence are Janet...

Q: Delaine is a 90% shareholder in a personal service corporation (

Delaine is a 90% shareholder in a personal service corporation (PSC). The corporation paid Delaine a sa1ary of $265,000 during its fiscal year ending September 30, 2018. a. Assume that the corporation...

Q: Find a Federal or state proposal for a soda tax or sweetened

Find a Federal or state proposal for a soda tax or sweetened beverage tax. Provide the bill number and a brief explanation. Also apply the AICPA's principles of good tax policy to support your recomme...

Q: Gaffey Corporation is a wholesale distributor of auto parts and uses the

Gaffey Corporation is a wholesale distributor of auto parts and uses the cash method of accounting. The company's sales have been about $20,000,000 per year for the last few years. However, Gaffey has...