Questions from Individual Taxation

Q: Which of the following items is not a permanent book–tax

Which of the following items is not a permanent book–tax difference? a) Tax-exempt interest income. b) Tax-exempt insurance proceeds. c) Windfall tax benefits from the exercise of an NQO d) Meal expen...

Q: Sarah (single) purchased a home on January 1, 2008

Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following...

Q: Using the facts from problem 57, Oriole Corporation proposes to pay

Using the facts from problem 57, 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 rate of inter...

Q: WAR (We Are Rich) has been in business since 1985

WAR (We Are Rich) has been in business since 1985. WAR is an accrual method sole proprietorship that deals in the manufacturing and wholesaling of various types of golf equipment. Hack & Hack CPAs...

Q: Last year, Miley decided to terminate the S corporation election of

Last year, Miley decided to terminate the S corporation election of her solely owned corporation on October 17, 2018 (effective immediately), in preparation for taking it public. At the time of the el...

Q: Rivendell Corporation uses the accrual method of accounting and has the following

Rivendell Corporation uses the accrual method of accounting and has the following assets as of the end of 2018. Rivendell converted to an S corporation on January 1, 2019. a) What is Rivendellâ...

Q: Virginia Corporation is a calendar-year corporation. At the beginning

Virginia Corporation is a calendar-year corporation. At the beginning of 2019, its election to be taxed as an S corporation became effective. Virginia Corp.’s balance sheet at the en...

Q: Tempe Corporation is a calendar-year corporation. At the beginning

Tempe Corporation is a calendar-year corporation. At the beginning of 2019, its election to be taxed as an S corporation became effective. Tempe Corp.’s balance sheet at the end of 2...

Q: Wood Corporation was a C corporation in 2018 but elected to be

Wood Corporation was a C corporation in 2018 but elected to be taxed as an S corporation in 2019. At the end of 2018, its earnings and profits were $15,500. The following table reports Wood’s (taxable...

Q: Jack, a geologist, had been debating for years whether or

Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that ma...