Questions from Individual Taxation

Q: Hughie, Dewey, and Louie are equal shareholders in HDL,

Hughie, Dewey, and Louie are equal shareholders in HDL, an S corporation. HDL’s S election terminates under each of the following alternative scenarios. When is the earliest it can again operate as an...

Q: Bad Brad sells used semi-trucks and tractor trailers in the

Bad Brad sells used semi-trucks and tractor trailers in the Texas panhandle. Bad Brad has sales as follows: Bad……………………………………………Brad State………………………………………….Sales Colorado………………………………$234,992 Oklahoma…...

Q: Nicole’s Salon, a Louisiana Corporation, operates beauty salons in

Nicole’s Salon, a Louisiana Corporation, operates beauty salons in Arkansas, Louisiana, and Tennessee. These salon’s payroll by state, are as follows: Nicole’s…………….…….....Salon State…………………..….. Pay...

Q: Delicious Dave’s Maple Syrup, a Vermont Corporation, has property in

Delicious Dave’s Maple Syrup, a Vermont Corporation, has property in the following states: What are the property apportionment factors for Maine, Massachusetts, New Hampshire, and Ve...

Q: Lucy and Ricky Ricardo live in Los Angeles, California. After

Lucy and Ricky Ricardo live in Los Angeles, California. After they were married, they started a business named ILL Corporation (a C corporation). For state law purposes, the shares of stock in ILL Cor...

Q: Susie’s Sweet Shop has the following sales, payroll and property factors

Susie’s Sweet Shop has the following sales, payroll and property factors: What are Susie’s Sweet Shop’s Iowa and Missouri apportionment factors u...

Q: Brady Corporation is a Nebraska Corporation, but owns business and investment

Brady Corporation is a Nebraska Corporation, but owns business and investment property in surrounding states as well. Determine the state where each item of income is allocated. a. $15,000 of dividend...

Q: Mark is the sole shareholder of Tex Corporation. Mark first formed

Mark is the sole shareholder of Tex Corporation. Mark first formed Tex as a C corporation. However, in an attempt to avoid having Tex’s income double taxed, Mark elected S corporation status for Tex s...

Q: Ashton Corporation is headquartered in Pennsylvania and has a state income tax

Ashton Corporation is headquartered in Pennsylvania and has a state income tax base there of $500,000. Of this amount, $50,000 was non-business income. Ashton’s Pennsylvania apportionment factor is 42...

Q: Crazy Eddie Incorporated manufactures baseball caps and distributes them across the northeastern

Crazy Eddie Incorporated manufactures baseball caps and distributes them across the northeastern United States. The firm is incorporated and headquartered in New York and sells to customers in Connect...