Questions from General Taxation

Q: Lefty completes the following capital asset transactions. Compute Lefty’s recognized capital

Lefty completes the following capital asset transactions. Compute Lefty’s recognized capital gain or loss from these transactions. Long-term gain……….$10,000 Short-term gain……….4,000 Short-term loss……...

Q: Alva received dividends on her stocks as follows. Amur Corporation (

Alva received dividends on her stocks as follows. Amur Corporation (a French corporation whose stock is traded on an established U.S. securities market) $60,000 Blaze, Inc., a Delaware corporation 40,...

Q: Peyton sells an office building and the associated land on May 1

Peyton sells an office building and the associated land on May 1, 2015. Under the terms of the sales contract, Peyton is to receive $1,600,000 in cash. The purchaser is to assume Peyton’s mortgage of...

Q: Logan and Johnathan exchange land, and the exchange qualifies as like

Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan’s land (adjusted basis of $85,000) is worth $100,000 and Johnathan’s land has a fair market value...

Q: Camilo’s property, with an adjusted basis of $155,000

Camilo’s property, with an adjusted basis of $155,000, is condemned by the state. Camilo receives property with a fair market value of $180,000 as compensation for the property taken. a. What is Ca...

Q: Dexter owns a large tract of land and subdivides it for sale

Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers fo...

Q: Shelia purchases $50,000 of newly issued Gingo Corporation bonds

Shelia purchases $50,000 of newly issued Gingo Corporation bonds for $45,000. The bonds have original issue discount (OID) of $5,000. After Sheila amortized $2,300 of OID and held the bonds for four y...

Q: Olivia wants to buy some vacant land for investment purposes. She

Olivia wants to buy some vacant land for investment purposes. She currently cannot afford the full purchase price. Instead, Olivia pays the landowner $8,000 to obtain an option to buy the land for $17...

Q: Jacob purchased business equipment for $56,000 in 2012 and

Jacob purchased business equipment for $56,000 in 2012 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2015 for $26,000. What is the amount and character of Jacob’s g...

Q: An apartment building was acquired in 2006. The depreciation taken on

An apartment building was acquired in 2006. The depreciation taken on the building was $123,000, and the building was sold for a $34,000 gain. What is the maximum amount of 25% gain?