Questions from Federal Taxation

Q: Bigham Corporation, an accrual basis calendar year taxpayer, sells its

Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12- and 24 month contracts. The corporation provides services to each customer every month. On July 1, 2021, Bigha...

Q: Which of the following is a deduction for AGI? a

Which of the following is a deduction for AGI? a. Charitable contributions of property. b. Alimony paid pursuant to a 2015 divorce agreement. c. State income taxes. d. Mortgage interest paid on your p...

Q: Jeffrey Dean, a Master’s Degree candidate at North State Central University

Jeffrey Dean, a Master’s Degree candidate at North State Central University, was awarded a $15,000 scholarship from North State Central in the current year. During the current year, he paid the follow...

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

Which of the following is not a deduction for AGI? a. Alimony paid for a divorce finalized in 2018. b. Business rent on a self-employed business. c. Property taxes paid on your primary residence. d. O...

Q: How many U.S. individuals claim a deduction for casualties

How many U.S. individuals claim a deduction for casualties? Does it vary by size of income (AGI)? How do casualty loss deductions compare to the amounts of other itemized deductions claimed by taxpaye...

Q: Caden and Lily are divorced on March 3, 2020. For

Caden and Lily are divorced on March 3, 2020. For financial reasons, however, Lily continues to live in Caden’s apartment and receives her support from him. Caden does not claim Lily as a dependent on...

Q: Locate a financial calculator app or program that assesses the wisdom of

Locate a financial calculator app or program that assesses the wisdom of buying versus leasing a new car. Use it to work through Problem 46 in this chapter.

Q: Mark and Lisa were divorced in 2020. In 2021, Mark

Mark and Lisa were divorced in 2020. In 2021, Mark has custody of their children, but Lisa provides nearly all of their support. Who is entitled to claim the children as dependents?

Q: There are significant tax planning opportunities related to fixed asset acquisition (

There are significant tax planning opportunities related to fixed asset acquisition (and depreciation). Search out how large public accounting firms are assisting clients in this area. Summarize your...

Q: Kelly decided to invest in Lime, Inc. common stock after

Kelly decided to invest in Lime, Inc. common stock after reviewing Lime’s public disclosures, including recent financial statements and a number of press releases issued by Lime. On August 7, 2019, Ke...