Questions from Taxation

Q: Identify three ways that governments can alter their tax system to increase

Identify three ways that governments can alter their tax system to increase revenues.

Q: Firm NB, which uses the cash method of accounting, recently

Firm NB, which uses the cash method of accounting, recently received two cases of French wine from a client in settlement of a $1,300 bill. Does Firm NB avoid income recognition because it received a...

Q: Knute Company purchased only one asset during its calendar taxable year.

Knute Company purchased only one asset during its calendar taxable year. The asset cost $650,000 and has a three-year recovery period. Compute MACRS depreciation with respect to this asset over the re...

Q: How is the principle of conservatism reflected in the tax law’s premise

How is the principle of conservatism reflected in the tax law’s premise concerning the deductibility of business expenditures?

Q: What is the purpose of the MACRS half-year, mid

What is the purpose of the MACRS half-year, mid quarter, and midmonth conventions?

Q: Why do the MACRS tables published by the IRS incorporate a depreciation

Why do the MACRS tables published by the IRS incorporate a depreciation convention for the first year during an asset’s recovery period but not for the year of disposition?

Q: Firm O purchased two items of business personality this year. The

Firm O purchased two items of business personality this year. The first item cost $35,000 and has a five-year recovery period, and the second item cost $61,500 and has a seven-year recovery period. Fi...

Q: Describe the difference in tax treatment between start-up costs of

Describe the difference in tax treatment between start-up costs of a new business and expansion costs of an existing business.

Q: Firm W and Firm X both have goodwill and going-concern

Firm W and Firm X both have goodwill and going-concern value worth approximately $1 million. However, only Firm X reports an amortization deduction with respect to its goodwill and going-concern value...

Q: Under what circumstances is percentage depletion not a true cost recovery deduction

Under what circumstances is percentage depletion not a true cost recovery deduction?