Questions from Individual Taxation

Q: During the current year, FTP Corporation reported regular taxable income of

During the current year, FTP Corporation reported regular taxable income of $500,000. FTP used the following information in its tax-related computations: • $12,000 interest from Irvine City bonds: Bon...

Q: What is WSS Corporation’s AMT base in each of the following scenarios

What is WSS Corporation’s AMT base in each of the following scenarios? a. WSS’s AMTI is $50,000. b. WSS’s AMTI is $175,000. c. WSS’s AMTI is $300,000. d. WSS’s AMTI is $1,000,000.

Q: Assume CDA corporation must pay the AMT for the current year.

Assume CDA corporation must pay the AMT for the current year. It is considering entering into a transaction that will generate $20,000 of income for the current year. What is CDA’s after-tax benefit o...

Q: Assume JJ Inc. must pay the AMT for the current year

Assume JJ Inc. must pay the AMT for the current year. Near the end of the year, JJ is considering making a charitable contribution of $20,000. What is its after-tax cost of the contribution under each...

Q: What is a tax position as it relates to the application of

What is a tax position as it relates to the application of ASC 740 to uncertain tax positions?

Q: Compute ACC, Inc.’s tentative minimum tax (TMT),

Compute ACC, Inc.’s tentative minimum tax (TMT), alternative minimum tax (AMT), and minimum tax credit (MTC) in each of the following alternative scenarios: a. ACC’s alternative minimum tax base is $5...

Q: In year 1, GSL Corp.’s alternative minimum tax base

In year 1, GSL Corp.’s alternative minimum tax base was $2,000,000 and its regular tax liability is $350,000. a. What is GSL’s total tax liability for years 1, 2, 3, and 4 (by year) assuming the foll...

Q: In year 1, Lazy Corporation reported a $500,000

In year 1, Lazy Corporation reported a $500,000 net operating loss for regular tax purposes and a $450,000 net operating loss for alternative minimum tax purposes (called an alternative tax net operat...

Q: ATW corporation currently uses the FIFO method of accounting for its inventory

ATW corporation currently uses the FIFO method of accounting for its inventory for book and tax purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the curr...

Q: ELS corporation is about to begin its sixth year of existence.

ELS corporation is about to begin its sixth year of existence. Assume that ELS reported gross receipts for each of its first five years of existence for scenarios A, B, and C as follows: a. In what ye...