Questions from Individual Taxation

Q: What must a shareholder consider in computing the amount of a noncash

What must a shareholder consider in computing the amount of a noncash distribution to include in gross income?

Q: Gopher Corporation reported taxable income of $500,000 this year

Gopher Corporation reported taxable income of $500,000 this year. Gopher paid a dividend of $100,000 to its sole shareholder, Sven Anderson. Gopher Corporation is subject to a flat rate tax of 34%....

Q: Bulldog Corporation reported taxable income of $500,000 this year

Bulldog Corporation reported taxable income of $500,000 this year before any deduction for any payment to its sole shareholder and employee, Georgia Brown. Bulldog chose to pay a bonus of $100,000 t...

Q: Hawkeye Company reports current E&P of $300,000

Hawkeye Company reports current E&P of $300,000 this year and accumulated E&P at the beginning of the year of $200,000. Hawkeye distributed $400,000 to its sole shareholder, Ray Kinsella, on December...

Q: What is an ad valorem tax? Name an example of this

What is an ad valorem tax? Name an example of this type of tax.

Q: This year Jolt Inc. reported $40,000 of taxable

This year Jolt Inc. reported $40,000 of taxable income before any charitable contribution deduction. Jolt contributed $10,000 this year to Goodwill Industries, a public charity. Compute the company&...

Q: Boilermaker, Inc. reported taxable income of $500,000

Boilermaker, Inc. reported taxable income of $500,000 this year and paid federal income taxes of $170,000. Not included in the company’s computation of taxable income is tax-exempt income of $...

Q: Gator, Inc. reported taxable income of $1,000

Gator, Inc. reported taxable income of $1,000,000 this year and paid federal income taxes of $340,000. Included in the company’s computation of taxable income is gain from sale of a depreciabl...

Q: Paladin, Inc. reported taxable income of $1,000

Paladin, Inc. reported taxable income of $1,000,000 this year and paid federal income taxes of $340,000. The company reported a capital gain from sale of investments of $150,000, which was partially...

Q: Using the facts from the previous problem, Oriole Corporation proposes to

Using the facts from the previous problem, Oriole Corporation proposes to pay Larry $100,000 and give him an installment note that will pay him $30,000 per year for the next 10 years plus a market rat...