Questions from General Taxation

Q: What is the effect on total taxes if a corporation with $

What is the effect on total taxes if a corporation with $200,000 of taxable income pays a bonus of $50,000 to its single shareholder-owner who has $100,000 of other taxable income and is taxed at the...

Q: Tatum Corporation (a calendar-year corporation) purchased a building

Tatum Corporation (a calendar-year corporation) purchased a building on June 6 of the current year for $300,000, of which $60,000 is for the land. What is the depreciation for the first year if the bu...

Q: At the beginning of 2017, AB Corporation (a calendar-

At the beginning of 2017, AB Corporation (a calendar-year corporation) owned the following assets: On February 1, 2017, AB sold its office furniture. On March 15, 2017, AB sold its computer equipment...

Q: Barry Corporation sold a machine used in its business for two years

Barry Corporation sold a machine used in its business for two years for $27,000. The machine originally cost $24,000 and it had an adjusted basis at the time of the sale of $17,000. Determine the amou...

Q: Willis Corporation (a calendar-year corporation) purchased $550

Willis Corporation (a calendar-year corporation) purchased $550,000 of used machinery (7-year property) on August 1. No other property was acquired in 2017. a. What is Willis Corporation’s depreciati...

Q: Calahan Corporation regularly factors its receivables when they are short of cash

Calahan Corporation regularly factors its receivables when they are short of cash. This spring they not only factored $325,000 of receivables at 80 percent of their value but sold two company automobi...

Q: Kondar Corporation (a calendar-year taxpayer) spent $2

Kondar Corporation (a calendar-year taxpayer) spent $2,090,000 to purchase used machinery in February 2017. a. What is the maximum that Kondar can elect to expense under Section 179? b. What is the...

Q: Corando Corporation (a calendar-year taxpayer) purchased $850

Corando Corporation (a calendar-year taxpayer) purchased $850,000 of used factory equipment in April 2017. Determine the maximum depreciation deduction for the equipment for 2017 and 2018.

Q: On March 1, 2017 Harry Corporation (a calendar-year

On March 1, 2017 Harry Corporation (a calendar-year taxpayer) purchased and placed in service office furniture costing $550,000. Compute the maximum amount Harry Corporation can elect to expense under...

Q: David operates his business as a sole proprietorship. In the current

David operates his business as a sole proprietorship. In the current year, he spends $20,000 for a used machine (7-year property). His business income, before consideration of any Section 179 deductio...