Questions from Individual Taxation


Q: Mike purchases a new heavy­ duty truck (5-year

Mike purchases a new heavy­ duty truck (5-year class recovery property) for his delivery service on April 30, 2018. No other assets were purchased during the year. The truck is not considered a passen...

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Q: On April 8, 2018, Holly purchased a residential apartment building

On April 8, 2018, Holly purchased a residential apartment building. The cost basis assigned to the building is $800,000. Holly also owns another residential apartment building that she purchased on No...

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Q: Explain the use of the mid­ quarter convention for MACRS depreciation

Explain the use of the mid­ quarter convention for MACRS depreciation:

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Q: Calculate the following: a. The first year of depreciation

Calculate the following: a. The first year of depreciation on a residential rental building costing $200,000 purchased July 2, 2018. b. The second year (2019) of depreciation on a computer costing $5...

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Q: Janie owns a 40% interest in Chang Partnership. Chang has

Janie owns a 40% interest in Chang Partnership. Chang has W-2 wages of $50,000 and qualified property of $450,000 in 2018. a. When computing the W-2 wages limitation, what is the amount of wages that...

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Q: During 2018, William purchases the following capital assets for use in

During 2018, William purchases the following capital assets for use in his catering business: Assume that William decides to use the election to expense on the baking equipment (and has adequate tax...

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Q: On February 2, 2018, Alexandra purchases a personal computer for

On February 2, 2018, Alexandra purchases a personal computer for her home. The computer cost $2,800. Alexandra uses the computer 80 percent of the time in her accounting business, and the remaining 20...

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Q: During 2018, Palo Fiero purchases the following property for use in

During 2018, Palo Fiero purchases the following property for use in his calendar year­end manufacturing business: Palo uses the accelerated depreciation method under MACRS, if available,...

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Q: Fly-By-Night (P.O. Box 1234

Fly-By-Night (P.O. Box 1234, Dallas, TX 75221, EIN 12-9876543) paid George Smith, an employee who lives at 432 Second Street, Garland, TX 75040, wages of $25,400. Based on George’s final 2018 pay stub...

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Q: Thomas is an employer with two employees, Patty and Selma.

Thomas is an employer with two employees, Patty and Selma. Patty’s wages are $12,450 and Selma’s wages are $1,275. The state unemployment tax rate is 5.4 percent. Calculate the following amounts for T...

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