Questions from General Taxation

Q: Quail Corporation anticipates that being positively perceived by the individual who is

Quail Corporation anticipates that being positively perceived by the individual who is elected mayor will be beneficial for business. Therefore, Quail contributes to the campaigns of both the Democrat...

Q: Sarah Ham, operating as a sole proprietor, manufactures printers in

Sarah Ham, operating as a sole proprietor, manufactures printers in the United States. For 2015, the proprietorship has QPAI of $400,000. Sarah’s modified AGI was $350,000. The W–2 wages paid by the p...

Q: Juan, a sole proprietor, acquires a new 5-year

Juan, a sole proprietor, acquires a new 5-year class asset on March 14, 2015, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. Jua...

Q: Cherry Corporation, a calendar year C corporation, is formed and

Cherry Corporation, a calendar year C corporation, is formed and begins business on April 1, 2015. In connection with its formation, Cherry incurs organizational expenditures of $54,000. Determine Che...

Q: On May 5, 2015, Christy purchased and placed in service

On May 5, 2015, Christy purchased and placed in service a hotel. The hotel cost $10.8 million. Calculate Christy’s cost recovery deductions for 2015 and for 2025.

Q: Janice acquired an apartment building on June 4, 2015, for

Janice acquired an apartment building on June 4, 2015, for $1.6 million. The value of the land is $300,000. Janice sold the apartment building on November 29, 2021. a. Determine Janice’s cost recovery...

Q: During March 2015, Sam constructed new agricultural fences on his farm

During March 2015, Sam constructed new agricultural fences on his farm. The cost of the fencing was $80,000. Sam does not elect immediate expensing under § 179 and he does not claim any available addi...

Q: On June 5, 2014, Dan purchased and placed in service

On June 5, 2014, Dan purchased and placed in service a 7-year class asset costing $550,000. Determine the maximum deductions that Dan can claim with respect to this asset in 2014 and 2015.

Q: In 2015, Muhammad purchased a new computer for $16,

In 2015, Muhammad purchased a new computer for $16,000. The computer is used 100% for business. Muhammad did not make a § 179 election with respect to the computer. He does not claim any available add...

Q: Wes acquired a mineral interest during the year for $10 million

Wes acquired a mineral interest during the year for $10 million. A geological survey estimated that 250,000 tons of the mineral remained in the deposit. During the year, 80,000 tons were mined, and 45...