Questions from Individual Taxation

Q: A corporation commissioned an accounting firm to recalculate the way it accounted

A corporation commissioned an accounting firm to recalculate the way it accounted for leasing transactions. With the new calculations, the corporation was able to file amended tax returns for the past...

Q: Which limitations might restrict a corporation’s deduction for a cash charitable contribution

Which limitations might restrict a corporation’s deduction for a cash charitable contribution? Explain how to determine the amount of the limitation.

Q: What is a company’s book equivalent of taxable income and how does

What is a company’s book equivalent of taxable income and how does this computation enter into the income tax provision process?

Q: For tax purposes, what happens to a corporation’s charitable contributions that

For tax purposes, what happens to a corporation’s charitable contributions that are not deducted in the current year because of the taxable income limitation?

Q: In year 1 (the current year), OCC Corp. made

In year 1 (the current year), OCC Corp. made a charitable donation of $200,000 to the Jordan Spieth Family Foundation (a qualifying charity). For the year, OCC reported taxable income of $1,500,000 be...

Q: In year 1 (the current year), LAA Inc. made

In year 1 (the current year), LAA Inc. made a charitable donation of $100,000 to the American Red Cross (a qualifying charity). For the year, LAA reported taxable income of $550,000 which included a $...

Q: Coattail Corporation (CC) manufactures and sells women and children’s coats

Coattail Corporation (CC) manufactures and sells women and children’s coats. This year CC donated 1,000 coats to a qualified public charity. The charity distributed the coats to needy women and childr...

Q: Maple Corp. owns several pieces of highly valued paintings that are

Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation’s headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,0...

Q: Riverbend Inc. received a $200,000 dividend from stock

Riverbend Inc. received a $200,000 dividend from stock it held in Hobble Corporation. Riverbend’s taxable income is $2,100,000 before deducting the dividends received deduction (DRD), a $40,000 NOL ca...

Q: Wasatch Corp. (WC) received a $200,000

Wasatch Corp. (WC) received a $200,000 dividend from Tager Corporation (TC). WC owns 15 percent of the TC stock. Compute WC’s deductible DRD in each of the following situations: a. WC’s taxable incom...