Questions from Taxation

Q: Zeno Inc. sold two capital assets in 2018. The first

Zeno Inc. sold two capital assets in 2018. The first sale resulted in a $53,000 capital loss, and the second sale resulted in a $25,600 capital gain. Zeno was incorporated in 2014, and its tax records...

Q: In its first taxable year, Band Corporation recognized $957,

In its first taxable year, Band Corporation recognized $957,500 ordinary business income and a $5,500 capital loss. In its second taxable year, Band recognized $1,220,000 ordinary business income, a $...

Q: In its first year, Firm KZ recognized $427,300

In its first year, Firm KZ recognized $427,300 ordinary business income and a $13,590 loss on the sale of an investment asset. In its second year, Firm KZ recognized $500,800 ordinary business income,...

Q: Firm E must choose between two alternative transactions. Transaction 1 requires

Firm E must choose between two alternative transactions. Transaction 1 requires a $9,000 cash outlay that would be nondeductible in the computation of taxable income. Transaction 2 requires a $13,500...

Q: Lemon Corporation generated $324,600 of income from ordinary business

Lemon Corporation generated $324,600 of income from ordinary business operations. It also sold several assets during the year. Compute Lemon’s taxable income under each of the following alternative as...

Q: This year, Zeron Company generated $87,200 income from

This year, Zeron Company generated $87,200 income from the performance of services for its clients. It also sold several assets during the year. Compute Zeron’s taxable income under each of the follow...

Q: This year, QIO Company generated $192,400 income from

This year, QIO Company generated $192,400 income from its routine business operations. In addition, it sold the following assets, all of which were held for more than 12 months. Compute QIOâ...

Q: Firm CS performed consulting services for Company P. The two parties

Firm CS performed consulting services for Company P. The two parties agreed that Company P would pay for the services by transferring investment securities to Firm CS. At date of transfer, the securit...

Q: This year, Sigma Inc. generated $612,000 income

This year, Sigma Inc. generated $612,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. a. Compu...

Q: EzTech, a calendar year accrual basis corporation, generated $994

EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months....