Questions from Individual Taxation

Q: In year 0, Canon purchased a machine to use in its

In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the...

Q: In year 0, Longworth Partnership purchased a machine for $40

In year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, L...

Q: On May 1, year 1, Anna received 5,000

On May 1, year 1, Anna received 5,000 shares of restricted stock from her employer, Jarbal Corporation. On that date, the stock price was $5 per share. On receiving the restricted stock, Anna made the...

Q: On August 1 of year 0, Dirksen purchased a machine for

On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. a. What is the amount and character of the gain or...

Q: Rayburn Corporation has a building that it bought during year 0 for

Rayburn Corporation has a building that it bought during year 0 for $850,000. It sold the building in year 5. During the time it held the building, Rayburn depreciated it by $100,000. What is the amou...

Q: Moran owns a building he bought during year 0 for $150

Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During the time he held the building he depreciated it by $32,000. What is the amount and character of the g...

Q: Hart, an individual, bought an asset for $500,

Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 30 percent. Answer the questions presented in t...

Q: Luke sold a building and the land on which the building sits

Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corp. at fair market value. The fair market value of the building was determined to be $325,000;...

Q: Buckley, an individual, began a business two years ago and

Buckley, an individual, began a business two years ago and has never sold a §1231 asset. Buckley owned each of the assets since he began the business. In the current year, Buckley sold the...

Q: Lily Tucker (single) owns and operates a bike shop as

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business: / Lily’s taxable income before...