Questions from General Taxation

Q: Harvey is a self-employed accountant with earned income from the

Harvey is a self-employed accountant with earned income from the business of $120,000 (after the deduction for one-half of his self-employment tax). He has a profit sharing plan (e.g., defined contrib...

Q: In each of the following independent situations, determine the amount of

In each of the following independent situations, determine the amount of FICA (Social Security and Medicare) the employer should withhold from the employee’s 2015 salary. a. Harry earns a $50,000 sal...

Q: Pink Corporation has several employees. Their names and salaries are listed

Pink Corporation has several employees. Their names and salaries are listed below. Judy…………………………………………………………. $470,000 Holly (Judy’s daughter) …………………………………. 100,000 Terry (Judy’s son) …………………………………...

Q: At the start of the current year, Blue Corporation (a

At the start of the current year, Blue Corporation (a calendar year taxpayer) holds accumulated E & P of $100,000. Blue’s current E & P is $60,000. At the end of the year, it distributes $200,000 ($10...

Q: Cardinal Corporation, a calendar year taxpayer, receives dividend income of

Cardinal Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds a 10% interest. Cardinal also receives interest income of $35,000 from municip...

Q: Compute current E & P for Sparrow Corporation (a calendar year

Compute current E & P for Sparrow Corporation (a calendar year, accrual basis taxpayer). Sparrow reported the following transactions during 2015, its second year of operation. Taxable income ………………………...

Q: On September 30, Silver Corporation, a calendar year taxpayer,

On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note. The note is pay- able in five installments, with the first payment due n...

Q: In determining Blue Corporation’s current E & P for this tax year

In determining Blue Corporation’s current E & P for this tax year, how should taxable income be adjusted as a result of the following transactions? a. A capital loss carryover from two years ago, full...

Q: Sparrow Corporation is a calendar year taxpayer. At the beginning of

Sparrow Corporation is a calendar year taxpayer. At the beginning of the current year, Sparrow holds accumulated E & P of $33,000. The corporation incurs a deficit in current E & P of $46,000 that acc...

Q: Complete the following schedule for each case. Unless otherwise indicated

Complete the following schedule for each case. Unless otherwise indicated, assume that the shareholders have ample basis in the stock investment. All taxpayers use a calendar tax year.