Questions from General Taxation

Q: BZD, a calendar year corporation, made the following year-

BZD, a calendar year corporation, made the following year-end accruals for 2019 financial statement purposes. In each case, determine how much of the accrued expense is deductible on BZD’s 2019 federa...

Q: Marcus, a cash basis individual, is a general partner in

Marcus, a cash basis individual, is a general partner in MNOP Partnership. Both Marcus and MNOP use a calendar year for tax purposes. According to the partnership agreement, MNOP pays a $10,000 guaran...

Q: David’s Schedule K-1 from DES, an S corporation,

David’s Schedule K-1 from DES, an S corporation, reported $8,900 taxexempt interest and $4,700 ordinary loss. David’s adjusted basis in his stock before consideration of these items was $2,000.

Q: Mr. and Mrs. West are the only shareholders in WW

Mr. and Mrs. West are the only shareholders in WW, an S corporation. This year, WW paid $21,000 to the caterers who provided food for the couple’s silver wedding anniversary celebration.

Q: The 100 shares of NS’s outstanding stock are owned by seven unrelated

The 100 shares of NS’s outstanding stock are owned by seven unrelated individuals. NS has an S corporation election in effect. Late in the year, one individual announces to his fellow shareholders tha...

Q: BR Inc. owns a 20 percent interest in a limited partnership

BR Inc. owns a 20 percent interest in a limited partnership. All the other partners are individual shareholders in BR. This year, BR sold land to page 10-45 the partnership for use in the partnership’...

Q: JKL Partnership uses the calendar year for tax purposes. For the

JKL Partnership uses the calendar year for tax purposes. For the current calendar year, the partnership generated $1 million ordinary business income. Corporation L, a 10 percent limited partner in JK...

Q: Ms. Kaspari, who has a 24 percent marginal rate on

Ms. Kaspari, who has a 24 percent marginal rate on ordinary income and a 15 percent marginal rate on adjusted net capital gain, acquired the following blocks of stock in KDS, a closely held corporatio...

Q: For the following problems, assume the taxable year is 2019.

For the following problems, assume the taxable year is 2019. Determine Mr. Jenkins’s 2019 filing status in each of the following independent cases. a. Mr. Jenkins and Mrs. Jenkins were divorced on Nov...

Q: For the following problems, assume the taxable year is 2019.

For the following problems, assume the taxable year is 2019. Ms. Noteboom, a single taxpayer, projects that she will incur about $13,500 of expenses qualifying as itemized deductions in both 2019 and...