Questions from Taxation

Q: Elsworthy Company operates a number of public golf courses in Florida.

Elsworthy Company operates a number of public golf courses in Florida. This year, Elsworthy constructed six new greens of a type described as “modern” greens. Modern greens contain sophisticated drain...

Q: Find the Internal Revenue Code on any freely accessible website and provide

Find the Internal Revenue Code on any freely accessible website and provide the URL. Do you consider the site reliable? Why or why not? What assurance, if any, does the site provide that its informati...

Q: On January 1 of every year since 1993, Lanier Corporation has

On January 1 of every year since 1993, Lanier Corporation has paid a $35,000 retainer fee to the law firm of Myer and Weeble (MW). MW specializes in structuring corporate mergers and acquisitions. In...

Q: Last year, Manabee Inc. leased a computer system from ICS

Last year, Manabee Inc. leased a computer system from ICS Company for five years. After using the system for only 10 months, Manabee realized that it was no longer adequate for its expanding business...

Q: Peter Nelson is employed full time as an accountant by an insurance

Peter Nelson is employed full time as an accountant by an insurance company. In his spare time, he operates a secondary business as a self-employed wedding photographer. On January 3 of the current ye...

Q: For the past 12 years, George Link has operated his appliance

For the past 12 years, George Link has operated his appliance repair business out of a 1,000-square-foot, ground floor office in a four story commercial building called 129 Main. Last year, George sig...

Q: Six years ago, Graham Inc., an accrual basis corporation,

Six years ago, Graham Inc., an accrual basis corporation, sold investment land (basis $562,250) to Jervil LLC and accepted Jervil’s note for the entire $865,000 sale price. The land was the collateral...

Q: KLP, a calendar year corporation, sponsored a contest for its

KLP, a calendar year corporation, sponsored a contest for its customers with a grand prize of $100,000 cash. Contestants could enter the contest from June 1 through November 30. KLP selected the winne...

Q: In 1998, Big Skye Partnership paid $695,500 for

In 1998, Big Skye Partnership paid $695,500 for a Christmas tree farm in northern Arizona. In 1991, over 300 farms and ranches in the area were granted allocations of water from a newly completed irri...

Q: The BPL Corporation is considering selling investment land to Kaier Partnership for

The BPL Corporation is considering selling investment land to Kaier Partnership for the land’s independently appraised FMV of $1.2 million. BPL purchased the land 20 years ago for $1.32 million cash....