Questions from General Taxation

Q: Yolanda is a cash basis taxpayer with the following transactions during the

Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sales of products……………………………………. $66,000 Cash paid for expenses (except rent and interest) …………………...

Q: Calculate the following: a. The first year of depreciation

Calculate the following: a. The first year of depreciation on a residential rental building costing $200,000purchased June 2, 2016. b. The second year of depreciation on a computer costing $1,500 purc...

Q: 1. Which of the following is not a partnership for tax

1. Which of the following is not a partnership for tax purposes? a. Willis and James purchase and operate a shoe store. b. Sharon and Gary operate an accounting practice together. c. Lillian and Don p...

Q: 1. A loss from the sale or exchange of property will

1. A loss from the sale or exchange of property will be disallowed in which of the following situations? a. A transaction between a partnership and a partner who owns 40 percent of the partnership cap...

Q: 1. Ironwood Corporation has ordinary taxable income of $40,

1. Ironwood Corporation has ordinary taxable income of $40,000 in the current tax year, and a long-term capital loss of $20,000. What is the corporation’s tax liability for the current year? a. $4,500...

Q: 1. Carl transfers land with a fair market value of $

1. Carl transfers land with a fair market value of $120,000 and basis of $30,000, to a new corporation in exchange for 85 percent of the corporation’s stock. The land is subject to a $40,000 liability...

Q: 1. Which of the following is a responsibility of a local

1. Which of the following is a responsibility of a local office of the IRS? a. Advising the Treasury Department on legislation b. Intelligence operations c. Appellate procedures d. Developing IRS rule...

Q: 1. Which of the following have privileged communication with a client

1. Which of the following have privileged communication with a client in a noncriminal tax matter? a. CPAs b. Enrolled agents c. Attorneys d. a and c e. a, b, and c 2. The burden of proof remains on...

Q: 1. Jim has a house payment of $2,000

1. Jim has a house payment of $2,000 per month of which $1,700 is deductible interest and real estate taxes with the remaining $300 representing a repayment of the principal balance of the note. Jim’s...

Q: Charlie’s Green Lawn Care is a cash basis taxpayer. Charlie Adame

Charlie’s Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2016 customer billings for lawn care into the next year. In additio...