Questions from Taxation

Q: Indicate whether each of the following items is considered a primary authority

Indicate whether each of the following items is considered a primary authority or a secondary authority. a. Private letter ruling from the IRS. b. CCH Federal Tax Service. c. BNA Tax Management Portfo...

Q: Use the legend provided to identify the type of primary authority indicated

Use the legend provided to identify the type of primary authority indicated by each of the following citations. a. §351. b. Rev. Rul. 86-55, 1986-1 C.B. 373. c. Rev. Proc. 2001-10, 2001-...

Q: Malo Inc. uses a fiscal year ending June 30. On

Malo Inc. uses a fiscal year ending June 30. On May 29, Malo received a check for $3,900 from a business that leases parking spaces in Malo’s parking garage. This payment was for the three month perio...

Q: Firm F, a calendar year taxpayer, owes a $200

Firm F, a calendar year taxpayer, owes a $200,000 long-term debt to an unrelated creditor. In December, it paid $14,160 to the creditor as interest for the 12-month period from the prior September 1 t...

Q: Wahoo Inc., a calendar year taxpayer, leases equipment to a

Wahoo Inc., a calendar year taxpayer, leases equipment to a customer for $4,500 monthly rent. On November 27, 2018, Wahoo received a $36,000 rent payment for the eight-month period beginning on Decemb...

Q: Using a 21 percent rate, compute the deferred tax asset or

Using a 21 percent rate, compute the deferred tax asset or deferred tax liability (if any) resulting from the following: a. A transaction resulting in a $31,000 temporary excess of book income over ta...

Q: GT Inc.’s net income before tax on its financial statements

GT Inc.’s net income before tax on its financial statements was $700,000, and its taxable income was $810,000. The $110,000 difference is the aggregate of temporary book/tax differences. GT’s tax rate...

Q: Green Up, a calendar year, accrual basis taxpayer, provides

Green Up, a calendar year, accrual basis taxpayer, provides landscaping installation and maintenance services to its customers. In August 2018, Green Up contracted with a university to renovate its la...

Q: Firm F is a cash basis legal firm. In 2017,

Firm F is a cash basis legal firm. In 2017, it performed services for a client, mailed the client a bill for $6,150, and recorded a $6,150 receivable. In 2018, Firm F discovered that the client was un...

Q: GK Company, a calendar year accrual basis taxpayer, made the

GK Company, a calendar year accrual basis taxpayer, made the following adjustments to its allowance for bad debts this year. January 1 allowance for bad debts …………………….$86,100 Actual write-offs of ac...