Questions from Individual Taxation

Q: Shasta Corporation sold a piece of land to Bill for $45

Shasta Corporation sold a piece of land to Bill for $45,000. Shasta bought the land two years ago for $30,600. What gain or loss does Shasta realize on the transaction?  

Q: Lassen Corporation sold a machine to a machine dealer for $25

Lassen Corporation sold a machine to a machine dealer for $25,000. Lassen bought the machine for $55,000 and has claimed $15,000 of depreciation expense on the machine. What gain or loss does Lassen...

Q: Longhaul Trucking traded two small trucks (each had a 10,

Longhaul Trucking traded two small trucks (each had a 10,000-pound gross weight) for one large truck (18,000-pound gross weight). Do the trucks qualify as like-kind property to Longhaul? (Hint: becaus...

Q: From an employer perspective, how are incentive stock options treated differently

From an employer perspective, how are incentive stock options treated differently than nonqualified stock options for tax purposes? In general, for a given number of options, which type of stock optio...

Q: Laura Li, a U.S. resident, works for

Laura Li, a U.S. resident, works for three months this summer in Hong Kong. What type of tax authority may be especially useful in determining the tax consequences of her foreign income?

Q: Lynette is the CEO of publicly traded TTT Corporation and earns a

Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $200,000 in the current year. Assume TTT has a 35 percent marginal tax rate. What is TTT Corporation’s after-tax cos...

Q: Brady graduated from SUNY New Paltz with his bachelor’s degree recently.

Brady graduated from SUNY New Paltz with his bachelor’s degree recently. He works for Makarov & Company CPAs. The firm pays his tuition ($10,000 per year) for him so that he can receive hi...

Q: Meg works for Freedom Airlines in the accounts payable department. Meg

Meg works for Freedom Airlines in the accounts payable department. Meg and all other employees receive free flight benefits (for the employee, family, and 10 free buddy passes for friends per year) as...

Q: What does it mean to vest in a defined benefit or defined

What does it mean to vest in a defined benefit or defined contribution plan?

Q: Describe the maximum annual benefit that taxpayers may receive under defined benefit

Describe the maximum annual benefit that taxpayers may receive under defined benefit plans.