Questions from General Taxation


Q: Annie develops a successful tax practice. She sells the practice to

Annie develops a successful tax practice. She sells the practice to her friend Carol for $54,000 and moves to Florida to retire. The tax practice has no assets except intangible benefits such as the g...

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Q: Geraldine is an accrual basis taxpayer who has the following transactions during

Geraldine is an accrual basis taxpayer who has the following transactions during the current calendar tax year: Accrued business income (except rent) …………………………………...$220,000 Accrued business expenses...

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Q: JBC Corporation is owned 20 percent by John, 30 percent by

JBC Corporation is owned 20 percent by John, 30 percent by Brian, 30 percent by Charlie, and 20 percent by Z Corporation. Z Corporation is owned 80 percent by John and 20 percent by an unrelated party...

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Q: 1. Martin sells a stock investment for $26,000

1. Martin sells a stock investment for $26,000 on August 2, 2016. Martin’s adjusted basis in the stock is $15,000. a. If Martin acquired the stock on November 15, 2015, calculate the amount and the na...

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Q: During 2016, Tom sold Sears stock for $10,000

During 2016, Tom sold Sears stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000. The bonds were purchased 2 months ago for $30,000. H...

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Q: Charu Khanna received a Form 1099-B showing the following stock

Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2016 None of the stock is qualified small business stock. The stock basis was reported to the IRS. Calcula...

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Q: Jocasta owns an apartment complex that she purchased 6 years ago for

Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made $60,000 of capital improvements on the complex, and her depreciation claimed on the building to date is...

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Q: Chrissy receives 200 shares of Chevron stock as a gift from her

Chrissy receives 200 shares of Chevron stock as a gift from her father. The stock cost her father $9,000 10 years ago and is worth $10,500 at the date of the gift. a. If the stock is sold for $12,500,...

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Q: Nadia Shalom has the following transactions during the year: Sale of

Nadia Shalom has the following transactions during the year: Sale of office equipment on March 15 that cost $19,000 when purchased on July 1, 2014. Nadia has claimed $3,000 in depreciation and sells t...

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Q: Steve Drake sells a rental house on January 1, 2016,

Steve Drake sells a rental house on January 1, 2016, and receives $120,000 cash and a note for $45,000 at 10 percent interest. The purchaser also assumes the mortgage on the property of $35,000. Steve...

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