Questions from Individual Taxation

Q: What distinguishes an income tax from other taxes?

What distinguishes an income tax from other taxes?

Q: Briefly describe the six step process by which a company computes its

Briefly describe the six step process by which a company computes its income tax provision.

Q: What are the two components of a company’s income tax provision?

What are the two components of a company’s income tax provision? What does each component represent about a company’s income tax provision?

Q: Jack would like to organize PPS as either an LLC or as

Jack would like to organize PPS as either an LLC or as a C corporation generating an 11 percent annual before-tax return on a $100,000 investment. Assume Jack’s marginal tax rate on earned income is 3...

Q: After several years of profitable operations, Javell, the sole shareholder

After several years of profitable operations, Javell, the sole shareholder of JBD Inc., a C corporation, sold 18 percent of her JBD stock to ZNO Inc., a C corporation in a similar industry. During the...

Q: For the current year, Custom Craft Services Inc. (CCS

For the current year, Custom Craft Services Inc. (CCS), a C corporation, reports taxable income of $200,000 before paying salary to Jaron the sole shareholder. Jaron’s marginal tax rate on ordinary in...

Q: For the current year, Maple Corporation, a C corporation,

For the current year, Maple Corporation, a C corporation, reports taxable income of $200,000 before paying salary to its sole shareholder Diane. Diane’s marginal tax rate on ordinary income is 35.9 pe...

Q: Timpanogos Inc. is an accrual-method calendar-year corporation

Timpanogos Inc. is an accrual-method calendar-year corporation. For 2015, it reported financial statement income after taxes of $1,152,000. Timpanogos provided the following information relating to it...

Q: What is the difference between recognition and realization as it applies to

What is the difference between recognition and realization as it applies to the recording of a deferred tax asset on a balance sheet?

Q: XYZ is a calendar-year corporation that began business on January

XYZ is a calendar-year corporation that began business on January 1, 2016. For 2016, it reported the following information in its current year audited income statement. Notes with important tax inform...