Questions from Federal Taxation

Q: Drake Appliance Company, an accrual basis taxpayer, sells home appliances

Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effects of each of the following transactions on the company's 2018 gross income assuming...

Q: Phillips, Inc., a cash basis C corporation, completes $

Phillips, Inc., a cash basis C corporation, completes $100,000 in sales for year 1, but only $75,000 of this amount is collected during year 1. The remaining $25,000 from these sales is collected prom...

Q: Alva received dividends on her stocks as follows. /

Alva received dividends on her stocks as follows. a. Alva purchased the Grape stock three years ago, and she purchased the Amur stock two years ago. She purchased the Blaze stock 18 days before it w...

Q: Dan Simms is the president and sole shareholder of Simms Corporation,

Dan Simms is the president and sole shareholder of Simms Corporation, 1121 Madison Street, Seattle, WA 98121. Dan plans for the corporation to make a charitable contribution to the University of Washi...

Q: Joseph Thompson is president and sole shareholder of Jay Corporation. In

Joseph Thompson is president and sole shareholder of Jay Corporation. In December 2018, Joe asks your advice regarding a charitable contribution he plans to have the corporation make to the University...

Q: Find a website, other than the IRS website, that discusses

Find a website, other than the IRS website, that discusses the taxation of short sales of securities.

Q: Juan, a sole proprietor, acquires a new 5-year

Juan, a sole proprietor, acquires a new 5-year class asset on March 14, 2018, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. Jua...

Q: Janice acquired an apartment building on June 4, 2018, for

Janice acquired an apartment building on June 4, 2018, for $1.6 million. The value of the land is $300,000. Janice sold the apartment building on November 29, 2024. a. Determine Janice's cost recovery...

Q: Olga is the proprietor of a small business. In 2018,

Olga is the proprietor of a small business. In 2018, the business's income, before consideration of any cost recovery or§ 179 deduction, is $250,000. Olga spend5 $620,000 on new 7-year class assets an...

Q: Duck, an accrual basis corporation, sponsored a rock concert on

Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2018. Gross receipts were $300,000. The following expenses were incurred and paid as indicated: Because the coliseum was...