Questions from General Taxation

Q: Using the 2019 corporate tax rate: a. What are

Using the 2019 corporate tax rate: a. What are the tax liability, the marginal tax rate, and the average tax rate for a corporation with $248,300 taxable income? b. What are the tax liability, the mar...

Q: Refer to the facts in the preceding problem. Assume that in

Refer to the facts in the preceding problem. Assume that in the year 2020, the Social Security base amount increases to $135,000. Compute BDF’s 2020 employer payroll tax with respect to Mr. Williams a...

Q: Mr. Yang just sold his entire 20 percent interest in DK

Mr. Yang just sold his entire 20 percent interest in DK Partnership to an unrelated purchaser for $7,500. Mr. Yang’s adjusted basis in the interest was zero, and he had a $12,000 carryforward of DK lo...

Q: Greentown Foundation is a nonprofit corporation exempt from federal income tax.

Greentown Foundation is a nonprofit corporation exempt from federal income tax. Its purpose is to solicit volunteers to plant and tend public gardens and greenbelts located in inner cities. The board...

Q: M&M is a publicly held corporation, and its stock

M&M is a publicly held corporation, and its stock trades on Nasdaq. This year, M&M contributed 15,000 shares of its newly issued common stock to a local charity. At the date of contribution, the stock...

Q: Twenty years ago, Chemco Corporation developed, manufactured, and marketed

Twenty years ago, Chemco Corporation developed, manufactured, and marketed Kepone, a chemical pesticide. As a result of manufacturing practices that violated state environmental standards, harmful lev...

Q: Ferris Corporation is looking to relocate its corporate headquarters to a small

Ferris Corporation is looking to relocate its corporate headquarters to a small, historic town in the northeastern United States. Representatives of the town government have suggested several historic...

Q: Talon Corporation has accumulated minimum tax credits from prior years. However

Talon Corporation has accumulated minimum tax credits from prior years. However, it currently projects that it will operate at a loss for 2018 and 2019, owing no regular tax liability for these years....

Q: Wiggins Corporation is a calendar year taxpayer. For the past nine

Wiggins Corporation is a calendar year taxpayer. For the past nine years, its taxable income has been stable, averaging $2 million per year. Through November of this year, its taxable income was $1.81...

Q: TK Enterprises, an accrual basis corporation, needs to raise capital

TK Enterprises, an accrual basis corporation, needs to raise capital. One idea is for TK to sell bonds to the public for $625 each. These bonds would have no stated rate of interest but would be redee...