Questions from General Taxation

Q: In a § 1031 like-kind exchange, Rafael exchanges equipment

In a § 1031 like-kind exchange, Rafael exchanges equipment that originally cost $200,000. On the date of the exchange, the equipment given up has an adjusted basis of $85,000 and a fair market value o...

Q: Coline has the following capital gain and loss transactions for 2015

Coline has the following capital gain and loss transactions for 2015. Short-term capital gain $ 5,000 Short-term capital loss (2,100) Long-term capital gain (28%) 6,000 Long-term capital gain (15%)...

Q: Elliott has the following capital gain and loss transactions for 2015.

Elliott has the following capital gain and loss transactions for 2015. Short-term capital gain $ 1,500 Short-term capital loss (3,600) Long-term capital gain (28%) 12,000 Long-term capital gain (2...

Q: Renata Corporation purchased equipment in 2013 for $180,000 and

Renata Corporation purchased equipment in 2013 for $180,000 and has taken $83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2015 for $110,000. What is the amount and cha...

Q: The following information for 2015 relates to Sparrow Corporation, a calendar

The following information for 2015 relates to Sparrow Corporation, a calendar year, accrual method taxpayer. Net income per books (after-tax) ………………………………………………………………….$174,100 Federal income tax per...

Q: Sissie owns two items of business equipment. Both were purchased in

Sissie owns two items of business equipment. Both were purchased in 2011 for $100,000, both have a 7-year MACRS recovery period, and both have an adjusted basis of $37,490. Sissie is considering selli...

Q: Terri, age 16, is claimed as a dependent on her

Terri, age 16, is claimed as a dependent on her parents’ 2015 return. During the year, Terri earned $5,000 in interest income and $3,000 from part-time jobs. a. What is Terri’s taxable income? b. Ho...

Q: During the year, Addison is involved in the following transactions:

During the year, Addison is involved in the following transactions: • Lost money gambling on a recent trip to a casino. • Helped pay for her neighbor’s dental bills. The neighbor is a good friend wh...

Q: Which of the following items are inclusions in gross income?

Which of the following items are inclusions in gross income? a. During the year, stock the taxpayer purchased as an investment doubled in value. b. Amount an off-duty motorcycle police officer recei...

Q: In late 2015, the Polks come to you for tax advice

In late 2015, the Polks come to you for tax advice. They are considering selling some stock investments for a loss and making a contribution to a traditional IRA. In reviewing their situation, you not...