Questions from Federal Taxation

Q: In 2018, Aurora received a $25,000 bonus computed

In 2018, Aurora received a $25,000 bonus computed as percentage of profits. In 2019, Aurora's employer determined that the 2018 profits had been incorrectly computed, and Aurora had to refund the $8,0...

Q: In 2018, Chaya Corporation, an accrua1 basis, ca1endar year

In 2018, Chaya Corporation, an accrua1 basis, ca1endar year taxpayer, provided services to clients and earned $25,000. The clients signed notes receivab1e to Chaya that have a fair market va1ue of $22...

Q: For 2018, Essence Company, a calendar year taxpayer, will

For 2018, Essence Company, a calendar year taxpayer, will change from using the cash method for tax purposes to the accrual method. At the end of 2017, Essence had the following items: What is the 4...

Q: On December 30, 2018, Whitney sold a piece of property

On December 30, 2018, Whitney sold a piece of property for $85,000. Her basis in the property was $40,000, and she incurred $1,200 in selling expenses. The buyer paid $5,000 down with the balance paya...

Q: In 2018, Skylar sold an apartment building for $20,

In 2018, Skylar sold an apartment building for $20,000 cash and a $300,000 note due in two years. Skylar's cost of the property was $250,000, and he had deducted depreciation of $150,000, $60,000 of w...

Q: Jabeli Corporation, a calendar year taxpayer utilizing the complete contract method

Jabeli Corporation, a calendar year taxpayer utilizing the complete contract method of accounting, constructed a building for Samson, Inc., under a 10ngterm contract. The gross contract price was $2,3...

Q: Which of the following is not a deduction for AGI?

Which of the following is not a deduction for AGI? a. Alimony paid b. Business rent on a self-employed business c. Property taxes paid on your primary residence d. One half of self-employment tax

Q: Shumpert, Inc., entered into a contract that was to take

Shumpert, Inc., entered into a contract that was to take two years to comp1ete, with an estimated cost of $900,000. The contract price was $1,300,000. Costs of the contract for 2017, the first year, t...

Q: The taxpayer's ending inventory is valued as follows: /

The taxpayer's ending inventory is valued as follows: Under the lower of cost or market method, what is the value of the taxpayer's inventory?

Q: Shondee Corporation uses the lower of cost or market and FIFO inventory

Shondee Corporation uses the lower of cost or market and FIFO inventory methods. At the end of 2017, the FIFO cost of the ending inventory was $181,000, and the market value of the inventory was $160,...