Questions from General Taxation

Q: Determine Amos’s gross income in each of the following cases.

Determine Amos’s gross income in each of the following cases. a. In the current year, Amos purchased an automobile for $25,000. As part of the transaction, Amos received a $1,500 rebate from the manu...

Q: The Bluejay Apartments, a new development, is in the process

The Bluejay Apartments, a new development, is in the process of structuring its lease agreements. The company would like to set the damage deposits high enough that tenants will keep the apartments in...

Q: Julie is considering three alternative investments of $10,000.

Julie is considering three alternative investments of $10,000. Julie is in the 28% marginal tax bracket for ordinary income and 15% for qualifying capital gains in all tax years. The selected investme...

Q: Determine the taxpayer’s gross income for tax purposes in each of the

Determine the taxpayer’s gross income for tax purposes in each of the following situations. a. Deb, a cash basis taxpayer, traded a corporate bond with accrued interest of $300 for corporate stock w...

Q: Al is a medical doctor who conducts his practice as a sole

Al is a medical doctor who conducts his practice as a sole proprietor. During 2015, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 201...

Q: Trip Garage, Inc. (459 Ellis Avenue, Harrisburg,

Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that repairs automobiles. In late December 2015, the company repaired Samuel Mosley’s car and charged him $1,0...

Q: Each Saturday morning, Ted makes the rounds of the local yard

Each Saturday morning, Ted makes the rounds of the local yard sales. He has developed a keen eye for bargains, but he cannot use all of the items he thinks are “real bargains.” Ted has found a way to...

Q: Accounting students understand that the accrual method of accounting is superior to

Accounting students understand that the accrual method of accounting is superior to the cash method for measuring the income and expenses from an ongoing business for financial reporting purposes. Thu...

Q: Drake Appliance Company, an accrual basis taxpayer, sells home appliances

Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effects of each of the following transactions on the company’s 2015 gross income assuming...

Q: In each of the following independent situations, determine the dividends received

In each of the following independent situations, determine the dividends received deduction. Assume that none of the corporate shareholders owns 20% or more of the stock in the corporations paying th...