Questions from General Taxation

Q: Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis

Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon invests $130,000 of cash. They each receive 100 shares in Ion Corporation...

Q: Pedro, who is a single taxpayer, had AGI of $

Pedro, who is a single taxpayer, had AGI of $328,000 for 2015. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation………………………………………… $12,000 State and loca...

Q: In late 2014, Randy and Rachel Erwin paid $7,

In late 2014, Randy and Rachel Erwin paid $7,000 in legal fees, adoption fees, and other expenses directly related to the adoption of an infant son, Jameson. In 2015, the year in which the adoption be...

Q: Vella owns and operates an illegal gambling establishment. In connection with

Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent ………………………………………… $ 24,000 Bribes ………………………………………. 40,...

Q: Alicia and Rafel are in the process of negotiating a divorce agreement

Alicia and Rafel are in the process of negotiating a divorce agreement. They both worked during the marriage and contributed an equal amount to the marital assets. They own a home with a fair market v...

Q: For each of the following, determine the amount that should be

For each of the following, determine the amount that should be included in gross income: a. Peyton was selected the most valuable player in the Super Bowl. In recognition of this, he was awarded an au...

Q: Linda and Don are married and file a joint return. In

Linda and Don are married and file a joint return. In 2015, they received $12,000 in Social Security benefits and $35,000 in taxable pension benefits and interest. a. Compute the couple’s adj...

Q: Adrian was awarded an academic scholarship to State University for the 2015

Adrian was awarded an academic scholarship to State University for the 2015–2016 academic year. He received $6,500 in August and $7,200 in December 2015. Adrian had enough personal savings to pay all...

Q: Leigh sued an overzealous bill collector and received the following settlement:

Leigh sued an overzealous bill collector and received the following settlement: Damage to her automobile that the collector attempted to repossess ………………$ 3,300 Physical damage to her arm caused by t...

Q: Emma Doyle, age 55, is employed as a corporate attorney

Emma Doyle, age 55, is employed as a corporate attorney. For calendar year 2015, she had AGI of $100,000 and paid the following medical expenses: Medical insurance premiums ……………………………………………………………….…...