Questions from General Taxation

Q: Vanessa bought 2,000 shares of Barbco stock when the company

Vanessa bought 2,000 shares of Barbco stock when the company was formed for $107,000. The company had $900,000 of total capital upon formation; thus, it qualified as Section 1244 stock. Vanessa sold t...

Q: Taylor bought 10,000 shares of qualifying Section 1202 stock from

Taylor bought 10,000 shares of qualifying Section 1202 stock from a start-up company A on May 1, 2013 for $1,000,000 and 5,000 shares of Section 1202 stock from start-up company B on June 1, 2014 for...

Q: George bought 6,000 shares of Section 1244 stock from Dorado

George bought 6,000 shares of Section 1244 stock from Dorado Corporation six years ago for $160,000. The company has not done well so this year George sold all of his stock for $45,000. a. Determine t...

Q: Clarice became very ill in February of 2017 and was unable to

Clarice became very ill in February of 2017 and was unable to work the rest of the year. She had only $12,000 of income from her sole proprietorship for the time she worked and was forced to sell the...

Q: Al Shalou, a single individual, had only $14,

Al Shalou, a single individual, had only $14,000 of salary income in 2017, but he had a number of taxable gains and losses on his property transactions during the year with the following results: a....

Q: Bill had the following gains and losses on asset sales: $

Bill had the following gains and losses on asset sales: $500 gain on stock held 11 months; a $2,300 gain on land held two years; $1,900 loss on gold coins held two years; $1,200 gain on antique toys h...

Q: How are net losses treated in the Section 1231 netting process?

How are net losses treated in the Section 1231 netting process? How is a net Section 1231 gain taxed?

Q: Wilma trades a fully depreciated computer used in her business for a

Wilma trades a fully depreciated computer used in her business for a new computer with a selling price of $3,200. Wilma pays only $2,500 for the computer because she receives a $200 discount as a favo...

Q: The Taylor Corporation acquires a large boring machine in exchange for two

The Taylor Corporation acquires a large boring machine in exchange for two of its smaller boring machines. The large machine has a fair market value of $108,000. The smaller machines are valued at $92...

Q: Whipple Corporation exchanges several pieces of office furniture for 10 file cabinets

Whipple Corporation exchanges several pieces of office furniture for 10 file cabinets that the Go-Along Corporation no longer needs. Go-Along also gives Whipple a pair of season tickets for the local...