Questions from General Taxation

Q: Barbara sold three assets during 2017. How much and what kind

Barbara sold three assets during 2017. How much and what kind of gain or loss does she recognize from each sale? What tax rate applies to the net gain if Barbara’s ordinary income is taxed at 25 perce...

Q: Goldrush Corporation bought a mine in year 1 for $90,

Goldrush Corporation bought a mine in year 1 for $90,000 and estimated there were 100,000 tons of extractable ore. In year 1, it mined 8,000 tons and sold 7,000 tons. In year 2, it mined 7,000 and sol...

Q: Striker Corporation bought a mine in year 1 for $100,

Striker Corporation bought a mine in year 1 for $100,000 and estimated that there were 100,000 tons of extractable ore. In year 1, it mined 10,000 tons and sold 8,000 tons. In year 2, it mined 9,000 a...

Q: Geraldine’s ordinary income places her in the 28 percent income tax bracket

Geraldine’s ordinary income places her in the 28 percent income tax bracket after a number of transactions involving taxable gains and losses on several types of capital assets held more than one year...

Q: What are the maximum tax rates that apply to a single individual’s

What are the maximum tax rates that apply to a single individual’s $20,000 long-term capital gain on corporate stocks if total taxable income is a. $35,000? b. $230,000? c. $430,000? d. How would...

Q: What activities are deductible as research and experimentation expenditures? How are

What activities are deductible as research and experimentation expenditures? How are they usually treated for tax purposes?

Q: A single taxpayer has $15,000 of ordinary taxable income

A single taxpayer has $15,000 of ordinary taxable income in 2017 (after his exemption and standard deduction but before consideration of the following recognized gains), a $9,000 long-term capital gai...

Q: Robert Lento, the sole proprietor of a consulting business, has

Robert Lento, the sole proprietor of a consulting business, has gross receipts of $600,000 in 2017. Expenses paid by his business are Advertising…………………………………………..$ 2,500 Employee salaries……………………………...

Q: Sam Johnson started a small machine shop, Machines, Inc.,

Sam Johnson started a small machine shop, Machines, Inc., in his garage and incorporated it in March of 2014 as a calendar-year corporation. At that time, he began using his personal computer and tool...

Q: Wilma does secretarial work out of her home. She purchased her

Wilma does secretarial work out of her home. She purchased her own computer and used it 2,250 hours for her work during the year; her children, however, also use the computer for 250 hours to do their...