Questions from Individual Taxation

Q: Sandy Corp. projects that it will have taxable income of $

Sandy Corp. projects that it will have taxable income of $150,000 for the year before paying any fringe benefits. Assume Karen, Sandy’s sole shareholder, has a marginal tax rate of 35 percent on ordin...

Q: Jabar Corporation, a C corporation, projects that it will have

Jabar Corporation, a C corporation, projects that it will have taxable income of $300,000 before incurring any lease expenses. Jabar’s tax rate is 35 percent. Abdul, Jabar’s sole shareholder, has a ma...

Q: Nutt Corporation projects that it will have taxable income for the year

Nutt Corporation projects that it will have taxable income for the year of $400,000 before incurring any interest expense. Assume Nutt’s tax rate is 35 percent. a. What is the amount of the overall ta...

Q: Ultimate Comfort Blankets Inc. has had a great couple of years

Ultimate Comfort Blankets Inc. has had a great couple of years and wants to distribute its earnings while avoiding double taxation on its income. It decides to give its sole shareholder, Laura, a sala...

Q: Under what circumstances can a taxpayer meet the ownership and use requirements

Under what circumstances can a taxpayer meet the ownership and use requirements for a residence but still not be allowed to exclude all realized gain on the sale of the residence?

Q: In its first year of existence (year 1), SCC corporation

In its first year of existence (year 1), SCC corporation (a C corporation) reported a loss for tax purposes of $30,000. Using the corporate tax rate table, determine how much tax SCC will pay in year...

Q: In its first year of existence (year 1) WCC Corporation

In its first year of existence (year 1) WCC Corporation (a C corporation) reported taxable income of $170,000 and paid $49,550 of federal income tax. In year 2, WCC reported a net operating loss of $4...

Q: Damarcus is a 50% owner of Hoop (a business entity

Damarcus is a 50% owner of Hoop (a business entity). In the current year, Hoop reported a $100,000 business loss. Answer the following questions associated with each of the following alternative scena...

Q: Mickey, Mickayla, and Taylor are starting a new business (

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40% ownership interest, Mickalya is contributing a building with a va...

Q: : Dave and his friend Stewart each own 50 percent of KBS

Dave and his friend Stewart each own 50 percent of KBS. During the year, Dave receives $75,000 compensation for services he performs for KBS during the year. He performed a significant amount of work...