Questions from Federal Taxation

Q: Citron, a calendar year taxpayer, began business in January 2020

Citron, a calendar year taxpayer, began business in January 2020. It had a long-term capital gain of $5,000 in 2020 and a long-term capital loss of $10,000 in 2021. For both years, Citron had an opera...

Q: Robin incurred the following capital transactions in 2021. LTCG …………………………………………$

Robin incurred the following capital transactions in 2021. LTCG …………………………………………$10,000 LTCL ……………………………………………..8,000 STCG ……………………………………………..2,000 STCL ………………………………………………..–0– Robin also reported a n...

Q: On December 6, 2021, Kestrel Company (a calendar year

On December 6, 2021, Kestrel Company (a calendar year taxpayer) authorizes a cash donation of $50,000 to the Memphis Public Library. The pledge is carried out as follows: $15,000 on December 12, 2021;...

Q: During 2022, Siskin Corporation (a C corporation) entered into

During 2022, Siskin Corporation (a C corporation) entered into the following transactions. Income from operations……………………………………………………………………………… $500,000 Expenses from operations …………………………………………………………...

Q: Deena, Walt, and Pat form Swan Corporation with the following

Deena, Walt, and Pat form Swan Corporation with the following investments. In addition to the 500 shares of stock, Pat receives $100,000 in cash from Swan Corporation. Assume that each share of Swan s...

Q: Ling is the sole shareholder of Crimson Corporation (a C corporation

Ling is the sole shareholder of Crimson Corporation (a C corporation). At a time when Crimson has a deficit in accumulated E & P of $90,000 and current E & P of $65,000, it distributes a cash dividend...

Q: Assume the same facts as in Problem 50. Kirby Turner is

Assume the same facts as in Problem 50. Kirby Turner is a 20% shareholder in Thrasher Corporation. She is aware of the tax consequences of the various items listed on the Schedule K–1 (Form 1120S) she...

Q: Jim Oza owns all of the stock in Drake, a calendar

Jim Oza owns all of the stock in Drake, a calendar year S corporation. For calendar year 2021, Drake anticipates an operating loss of $160,000 and could, if deemed worthwhile, sell a stock investment...

Q: Jenna owns 30% of the stock in Mockingbird, a calendar

Jenna owns 30% of the stock in Mockingbird, a calendar year S corporation. Her basis in the stock as of January 1, 2021, is $130,000. Mockingbird has an operating loss of $500,000 in 2021 and an opera...

Q: Refer to Form 4797 near the end of this chapter. Where

Refer to Form 4797 near the end of this chapter. Where would a $1231 gain on the disposition of business land be entered on the form?