Questions from Taxation

Q: Identify four possible differences in the computation of depreciation expense for financial

Identify four possible differences in the computation of depreciation expense for financial statement purposes and MACRS depreciation.

Q: Why do both corporate and non corporate taxpayers prefer capital gains to

Why do both corporate and non corporate taxpayers prefer capital gains to ordinary income? Why is the preference stronger for non corporate taxpayers?

Q: Why is Section 1250 recapture inapplicable to sales of realty subject to

Why is Section 1250 recapture inapplicable to sales of realty subject to MACRS depreciation?

Q: Under what circumstances could a taxpayer have an amount realized on the

Under what circumstances could a taxpayer have an amount realized on the disposition of an asset without any inflow of cash or property?

Q: Under what circumstances would a taxpayer elect not to use the installment

Under what circumstances would a taxpayer elect not to use the installment sale method of reporting gain?

Q: Distinguish between a firm’s tax basis in an asset and its equity

Distinguish between a firm’s tax basis in an asset and its equity in that asset.

Q: Both Corporation A and Corporation Z have business goodwill worth approximately $

Both Corporation A and Corporation Z have business goodwill worth approximately $1 million. The goodwill is a capital asset to Corporation A and a Section 1231 asset to Corporation Z. Can you explain...

Q: NC Company, a retail hardware store, began business in August

NC Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, NC paid $319,000 for inventory to stock the store. According t...

Q: Mrs. Carly called her accountant with a question. She is

Mrs. Carly called her accountant with a question. She is planning to sell nine acres of land for $380,000 cash. She purchased the land eight years ago for $195,000. She asked her accountant if her gai...

Q: Two years ago, Firm OP bought a tract of land for

Two years ago, Firm OP bought a tract of land for $600,000, paying $50,000 down and borrowing the balance of the purchase price from a commercial lender. The land is the collateral for OP’s debt. To d...