Questions from Individual Taxation

Q: This year Amy purchased $2,000 of equipment for use

This year Amy purchased $2,000 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because...

Q: While completing undergraduate school work in information systems, Dallin Bourne and

While completing undergraduate school work in information systems, Dallin Bourne and Michael Banks decided to start a business called ISys Answers which was a technology support company. During year 1...

Q: Diamond Mountain was originally thought to be one of the few places

Diamond Mountain was originally thought to be one of the few places in North America to contain diamonds, so Diamond Mountain Inc. (DM) purchased the land for $1,000,000. Later, DM discovered that the...

Q: Back in Boston, Steve has been busy creating and managing his

Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various...

Q: BCS Corporation is a calendar-year, accrual-method taxpayer

BCS Corporation is a calendar-year, accrual-method taxpayer. BCS was formed and started its business activities on January 1, year 0. It reported the following information for year 0. Indicate BCS’s d...

Q: Describe how you would determine the MACRS recovery period for an asset

Describe how you would determine the MACRS recovery period for an asset if you did not already know it.

Q: Compare and contrast the recovery periods used by MACRS and those used

Compare and contrast the recovery periods used by MACRS and those used under generally accepted accounting principles (GAAP).

Q: What are the two depreciation conventions that apply to tangible personal property

What are the two depreciation conventions that apply to tangible personal property under MACRS? Explain why Congress provides two methods.

Q: A business buys two identical tangible personal property assets for the same

A business buys two identical tangible personal property assets for the same identical price. It buys one at the beginning of the year and one at the end of year. Under what conditions would the taxpa...

Q: AAA, Inc., acquired a machine in year 1. In

AAA, Inc., acquired a machine in year 1. In May of year 3, it sold the asset. Can AAA find its year 3 depreciation percentage for the machine on the MACRS table? If not, what adjustment must AAA make...