Questions from General Taxation

Q: Manuel plans to make a significant contribution to his favorite charity with

Manuel plans to make a significant contribution to his favorite charity with one of the following assets. Which asset would you recommend Manuel contribute and why? a. Stock acquired five years ago a...

Q: What Constitutional Amendment allowed implementation of an income tax? In what

What Constitutional Amendment allowed implementation of an income tax? In what year was it ratified?

Q: What guidelines are provided by the Statement on Standards for Tax Services

What guidelines are provided by the Statement on Standards for Tax Services No. 3 regarding a CPA’s reliance on information supplied by the client for use in preparing the client’s tax return?

Q: Martin, a single man, contributes a painting to an art

Martin, a single man, contributes a painting to an art museum in the current year. The museum is thrilled to get the painting because it fits its Impressionist collection. Martin purchased the paintin...

Q: Laura and Bryan’s daughter, Lillian, starts college in a few

Laura and Bryan’s daughter, Lillian, starts college in a few months. What tax issues should they consider when they pay for Lillian’s college tuition and related expenses.

Q: Sharon has not worked outside the home since her first child was

Sharon has not worked outside the home since her first child was born five years ago and the younger of her two children is now three. She thinks they are old enough to go to a day care center so she...

Q: Eileen files as head of household and earns a salary of $

Eileen files as head of household and earns a salary of $75,000. She has a 4-year-old dependent daughter for whom she pays $5,000 in annual day care expenses so that she can work. Eileen’s employer of...

Q: Two years ago, Micro Corporation granted Alisa, their General Manager

Two years ago, Micro Corporation granted Alisa, their General Manager, 20,000 incentive stock options with an exercise price of $15 per share. The stock currently trades at $40 per share, but Alisa ex...

Q: Martin Martindale, the 40-year-old founder and president

Martin Martindale, the 40-year-old founder and president of Martindale Corporation (an accrual-basis, calendar-year C corporation), owns 60 percent of the stock and receives a salary of $600,000. Four...

Q: McGuire Corporation is planning to acquire a corporate jet to increase the

McGuire Corporation is planning to acquire a corporate jet to increase the efficiency and security of its executives who will use the jet for both business trips and personal vacations. McGuire Corpor...