Questions from Federal Taxation

Q: At a time when Emerald Corporation has E & P of $

At a time when Emerald Corporation has E & P of $200,000 it distributes land (adjusted basis of $95,000 and fair market value of $180,000) to its sole shareholder, Bill. a. What is Bill's dividend inc...

Q: Drab Corporation, a calendar year S Corporation, had the following

Drab Corporation, a calendar year S Corporation, had the following transactions during 2018: What is Drab's ordinary business income for 2018?

Q: Kim is a 40% shareholder in Taupe Corporation, a calendar

Kim is a 40% shareholder in Taupe Corporation, a calendar year S Corporation. During 2018, Taupe had an operating 10ss of $200,000. If Kim has a basis of $50,000 in his stock and has made a 10an to Ta...

Q: Christian and Mia form the CM Partnership, each receiving a 50

Christian and Mia form the CM Partnership, each receiving a 50% capital interest. Christian contributed property worth $200,000 (adjusted basis of $230,000), while Mia contributed property worth $210,...

Q: Rebecca sells her personal scooter for $550. She purchased the

Rebecca sells her personal scooter for $550. She purchased the scooter for $700 three years ago. She also sells a painting for $1,200 that she acquired five years ago for $900. What are the tax implic...

Q: During the year, Tamara had capital transactions resulting in gains (

During the year, Tamara had capital transactions resulting in gains (losses) as follows: Determine Tamara's net capital gain or loss as a result of these transactions.

Q: Myrna and Geoffrey filed a joint tax return in 2017. Their

Myrna and Geoffrey filed a joint tax return in 2017. Their AGI was $85,000, and itemized deductions were $13,700, which included $4,000 in state income tax. In 2018, they received a $1,800 refund of t...

Q: Muad, a calendar year taxpayer, is the owner of sole

Muad, a calendar year taxpayer, is the owner of sole proprietorship that uses the cash method. On February 1, 2018, she leases an office building to use in her business for $120,000 for an 18-month pe...

Q: Tim, a single taxpayer, operates a business as a single

Tim, a single taxpayer, operates a business as a single-member LLC. In 2018, his LLC reports business income of $225,000 and business deductions of $575,000, resulting in a loss of $350,000. What are...