Questions from Federal Taxation

Q: Davidson Industries manufactures golf course maintenance equipment. The equipment comes with

Davidson Industries manufactures golf course maintenance equipment. The equipment comes with a 4-year warranty. Davidson’s engineers estimate that approximately 10% of the equipment will be defectiv...

Q: Which of the following are based on an ability to pay?

Which of the following are based on an ability to pay? Explain. a. State Y collects a sales tax of 5% on all purchases of goods and services. b. State X collects a sales tax of 5% on all purchases of...

Q: Which of the following are based on an ability to pay?

Which of the following are based on an ability to pay? Explain. a. Local County assesses property taxes at the rate of 1% of assessed value. b. The university library lets all students, faculty, and s...

Q: Sheila, a single taxpayer, is a retired computer executive with

Sheila, a single taxpayer, is a retired computer executive with a taxable income of $100,000 in the current year. She receives $30,000 per year in tax-exempt municipal bond interest. Adam and Tanya...

Q: Andrew and Barbara each receive a salary of $80,000

Andrew and Barbara each receive a salary of $80,000. Neither Andrew nor Barbara has any other source of income. During the current year, Barbara paid $800 more in tax than Andrew. What might explai...

Q: Who is responsible for reporting and paying gift taxes? Estate taxes

Who is responsible for reporting and paying gift taxes? Estate taxes?

Q: Which of the following are related parties? a. Harvey

Which of the following are related parties? a. Harvey and his sister Janice? b. Harvey and the Madison Partnership? Harvey owns a 60% interest in the partnership. Three of Harvey’s friends own the...

Q: In each of the following cases, determine whether Inez is a

In each of the following cases, determine whether Inez is a related party: a. Inez owns 500 shares of XYZ Corporation's common stock. XYZ has 50,000 shares of common stock outstanding. b. Inez owns a...

Q: Doiko Corporation owns 90% of the stock in Nall, Inc

Doiko Corporation owns 90% of the stock in Nall, Inc. Trebor owns 40% of the stock of Doiko. Trebor's sister owns the remaining 60% of Doiko. During the current year, Trebor purchased land from Nal...

Q: Ed runs an auto repair business out of the garage attached to

Ed runs an auto repair business out of the garage attached to his personal residence. How should he account for each of the following items? a. Cash received from repair services, $28,000. b. Interest...