Questions from Federal Taxation

Q: Chang Corporation is part of a three-corporation unitary business.

Chang Corporation is part of a three-corporation unitary business. The group has a water’s edge election in effect with respect to unitary State Q. State B does not apply the unitary...

Q: Initiate, Inc., a § 501(c)(3)

Initiate, Inc., a § 501(c)(3) organization, receives the following revenues and incurs the following expenses. Grant from Gates Foundation……………………………………………………$ 70,000 Charitable contributions receive...

Q: Pigeon, Inc., a § 501(c)(3)

Pigeon, Inc., a § 501(c)(3) organization, received support from the following sources. Governmental unit A for services rendered…………………………………………….$ 6,300 Governmental unit B for services rendered…………...

Q: Define the following with respect to unrelated business income from debt financed

Define the following with respect to unrelated business income from debt financed property. a. Debt-financed income. b. Debt-financed property. c. Acquisition indebtedness.

Q: Burgundy, Inc., and Violet are equal partners in the calendar

Burgundy, Inc., and Violet are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment...

Q: Gray, Inc., a private foundation, reports the following items

Gray, Inc., a private foundation, reports the following items of income and deductions. Gray is not eligible for the 1% tax rate on net investment income. Interest income……………………………………………………….$ 29,00...

Q: Wonderful Wilderness, Inc., is a tax-exempt organization.

Wonderful Wilderness, Inc., is a tax-exempt organization. Its mission is to “explore, enjoy, and protect the wild places of the earth; practice and promote the responsible use of the earth’s ecosystem...

Q: Abby Wang recently became the treasurer of First Point Church. The

Abby Wang recently became the treasurer of First Point Church. The church has existed for three years and never has filed any documents with the IRS. a. Identify any Federal income tax reporting respo...

Q: When Padgett Properties LLC was formed, Nova contributed land (value

When Padgett Properties LLC was formed, Nova contributed land (value of $200,000 and basis of $50,000) and $100,000 cash, and Oscar contributed cash of $300,000. Both members received a 50% interest i...

Q: Trace, Ltd., an Allegro corporation, operates a trade or

Trace, Ltd., an Allegro corporation, operates a trade or business in the United States. Trace’s U.S.-source income effectively connected with this trade or business is $800,000 for the current year. T...