Questions from Individual Taxation


Q: Ralph invited a potential client to dinner and the theatre. Ralph

Ralph invited a potential client to dinner and the theatre. Ralph paid $250 for the dinner and $220 for the theatre tickets in advance. They first went to dinner and then they went to the theatre. a....

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Q: In January, Prahbu purchases a new machine for use in an

In January, Prahbu purchases a new machine for use in an existing production line of his manufacturing business for $90,000. Assume that the machine is a unit of property and is not a material or supp...

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Q: Dennis contributed business assets to a new business in exchange for stock

Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a nontaxable exchange. The fair market value of these assets was $287,000 on...

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Q: Brittany started a law practice as a sole proprietor. She owned

Brittany started a law practice as a sole proprietor. She owned a computer, printer, desk, and file cabinet she purchased during law school (several years ago) that she is planning to use in her busin...

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Q: Wanting to finalize a sale before year-end, on December

Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000. The appraised fair market value of the warehouse was $75,000, and the appra...

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Q: At the beginning of the year, Pop lock began a calendar

At the beginning of the year, Pop lock began a calendar-year dog boarding business called Griff’s Palace. Pop lock bought and placed in service the following assets during the year:...

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Q: DLW Corporation acquired and placed in service the following assets during the

DLW Corporation acquired and placed in service the following assets during the year: Assuming DLW does not elect §179 expensing or bonus depreciation, answer the following questions: a. W...

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Q: At the beginning of the year, Dee began a calendar-

At the beginning of the year, Dee began a calendar-year business and placed in service the following assets during the year: Assuming Dee does not elect §179 expensing or bonus depreciatio...

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Q: Evergreen Corporation (calendar year end) acquired the following assets during

Evergreen Corporation (calendar year end) acquired the following assets during the current year (ignore §179 expense and bonus depreciation for this problem): a. What is the allowable MAC...

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Q: Convers Corporation (June 30 year-end) acquired the following

Convers Corporation (June 30 year-end) acquired the following assets during the current tax year (ignore §179 expense and bonus depreciation for this problem): What is the allowable MACRS...

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