Questions from Taxation

Q: Minden Corporation wants to open a branch operation in eastern Europe and

Minden Corporation wants to open a branch operation in eastern Europe and must decide between locating the branch in either Country R or Country S. Labor costs are substantially lower in Country R tha...

Q: Echo Inc., which has a 21 percent U.S.

Echo Inc., which has a 21 percent U.S. tax rate, plans to expand its business into Country J. It could open a branch office, or it could create a foreign subsidiary in Country J. The branch office wou...

Q: Mr. and Mrs. Wilson are married with one dependent child

Mr. and Mrs. Wilson are married with one dependent child. They report the following information for 2018. Schedule C net profit ……………………………………………………$66,650 Interest income from certificate of deposit...

Q: Assume that the tax law allows individuals to claim an itemized deduction

Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of his family. Instead of this deduction, individuals may claim t...

Q: Extronic, a calendar year, accrual basis corporation, reported a

Extronic, a calendar year, accrual basis corporation, reported a $41,900 liability for accrued 2017 state income tax on its December 31, 2017, balance sheet. Extronic made the following state income t...

Q: This year, Mr. Joss accepted a job with BL Inc

This year, Mr. Joss accepted a job with BL Inc. He intends to work for only eight years and then start his own business. He has two options for accumulating the money he will need for this business. O...

Q: Mr. Remling is entitled to a $5,200 bonus

Mr. Remling is entitled to a $5,200 bonus this year (year 0). His employer gives him two options. He can either receive his $5,200 bonus in cash, or the employer will credit him with $4,500 deferred c...

Q: Ms. Price, age 51, plans to save $5

Ms. Price, age 51, plans to save $5,000 this year toward her retirement. She is considering three different investments. First, she could make a nondeductible contribution to a traditional IRA earning...

Q: Mr. and Mrs. Boltono, ages 64 and 65,

Mr. and Mrs. Boltono, ages 64 and 65, are both retired and live on Social Security plus the interest and dividends from several investments. Their taxable income averages $35,000 a year. Mrs. Boltono...

Q: Ms. Echols is the owner and beneficiary of a $150

Ms. Echols is the owner and beneficiary of a $150,000 insurance policy on her mother’s life. Ms. Echols has paid $46,000 premiums, and the policy is fully paid up (no more premiums are due). She needs...