Latest Questions & Answers

Q: TriStateCo, an Idaho corporation, has operated landfills in Washington (

TriStateCo, an Idaho corporation, has operated landfills in Washington (WA), Idaho (JD), and Oregon (OR) for the past 20 years. The states are changing their environmental Laws governing landfills, an...

See Answer

Q: Ten years ago, Xio and Xandra each invested $300,

Ten years ago, Xio and Xandra each invested $300,000 to create Xava Corporation. Xava develops and manufactures rock climbing and bungee jumping equipment. The business has become very profitable (it...

See Answer

Q: Calabra, S.A., a Peruvian corporation, manufactures inventory

Calabra, S.A., a Peruvian corporation, manufactures inventory in Peru. The inventory is sold to independent distributors in the United States, with title passing to the purchaser in the United States....

See Answer

Q: CL LLC is a manufacturing business and reported taxable income of $

CL LLC is a manufacturing business and reported taxable income of $40 million before interest expense, taxes, depreciation, and amortization ("tax EBITDA"), plus $1.5 million of separately stated inve...

See Answer

Q: You are the head tax accountant for Venture Company, a U

You are the head tax accountant for Venture Company, a U.S. corporation. The board of directors is considering expansion overseas and asks you to present a summary of the U.S. tax consequences of inve...

See Answer

Q: The Giant consolidated group includes SubTwo, which was acquired as part

The Giant consolidated group includes SubTwo, which was acquired as part of a ยง 382 ownership change. SubTwo brought with it to the group a large NOL carryforward, $3 million of which is available thi...

See Answer

Q: Browne and Red, both C corporations, formed the BR Partnership

Browne and Red, both C corporations, formed the BR Partnership on January 1, 2018. Neither Browne nor Red is a personal service corporation, and BR is not a tax shelter. BR's gross receipts were $22 m...

See Answer

Q: Detern1ine consolidated taxable income for the calendar year Yeti Group, which

Detern1ine consolidated taxable income for the calendar year Yeti Group, which elected consolidated status immediately upon the creation of the two member corporations on January 1 of year 1. All reco...

See Answer

Q: Compute consolidated taxable income for the calendar year Blue Group, which

Compute consolidated taxable income for the calendar year Blue Group, which elected consolidated status immediately upon creation of the two member corporations in January of year 1. All recognized in...

See Answer

Q: Continue with the facts of Problem 36. WhaleCo has determined that

Continue with the facts of Problem 36. WhaleCo has determined that it will sell all of its MinnowCo stock at the end of year 3 for $250,000. Taking into account the rules regarding excess loss account...

See Answer