Questions from Federal Taxation

Q: Lorissa owes Waterbury State Bank $200,000. During the

Lorissa owes Waterbury State Bank $200,000. During the current year, she is unable to make the required payments on the loan and negotiates the following terms to extinguish the debt. Lorissa transf...

Q: Mae and Vernon are equal owners of Denson, Inc., an

Mae and Vernon are equal owners of Denson, Inc., an S corporation. Denson owns 5,000 shares of stock in Cowboy Country. Denson paid $300,000 for the Cowboy Country stock, which is qualified small bu...

Q: Nina was getting ready to go to a party and couldn't find

Nina was getting ready to go to a party and couldn't find her bracelet. She remembered wearing it last weekend and taking it off at a bar to show to friends. Her memory of the remainder of that even...

Q: Sterling is a college professor with an extensive stock portfolio. Last

Sterling is a college professor with an extensive stock portfolio. Last year, he met Wheeler, a stockbroker with the firm of Ransom, LaForge, and Adkins. To get Sterling's business, Wheeler offered...

Q: Kimberly is a developer of apartment complexes. Two years ago,

Kimberly is a developer of apartment complexes. Two years ago, she formed Deckside Apartments, a partnership, and initiates development of the Deckside Apartments complex. The Staten Investment Fund...

Q: Fingeland's Forest Choppers is a corporation engaged in the production of timber

Fingeland's Forest Choppers is a corporation engaged in the production of timber and lumber. Two years ago, Fingeland's reforested a clear-cut area by planting nursery-grown seedlings. Last year, a...

Q: Dale’s son is a senior in high school and is planning to

Dale’s son is a senior in high school and is planning to go away to college next year. Dale would like to buy a house near the campus and rent it to his son. He comes to you for advice on the tax ra...

Q: Marjorie is a software systems engineer for Hacker Corporation. In November

Marjorie is a software systems engineer for Hacker Corporation. In November 2014, she inherited two parcels of land in Brower Township from her grandfather. Her grandfather's estate valued the parce...

Q: Ansel sells 400 shares of Sharpe, Inc., common stock on

Ansel sells 400 shares of Sharpe, Inc., common stock on October 12, 2017 for $11,800 and pays $600 in commissions on the sale. He acquired the stock for $18,400 plus $800 in commissions on July 8, 20...

Q: Rachel lives in a downtown apartment in Gotham City. She has

Rachel lives in a downtown apartment in Gotham City. She has 3 years remaining on her apartment lease when her landlord, Blaylock Company, approaches her about moving out. Blaylock wants to demolish...