• Q : Earning and profits at the end of the year....
    Accounting Basics :

    There were no other transactions that might affect ABC Inc.'s earnings and profits for the year. What was the amount of ABC Inc.'s earning and profits at the end of the year?

  • Q : Tax consequences of the transaction problem....
    Accounting Basics :

    In exchange for the assets transferred, Larry received 100 percent of the stock of the corporation. Which of the following statements regarding the tax consequences of the transaction is accurate?

  • Q : Deducted as lease expense on schedule....
    Accounting Basics :

    Based on the value of the automobile, the inclusion amounts for years 1 through 3 are $313, $590, and $602, respectively. If the taxpayer uses the car 60% of the time for business, what amount shoul

  • Q : Prepare a cost reconciliation schedule....
    Accounting Basics :

    Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete to materials. Prepare a cost r

  • Q : Partnership recognize on the distribution....
    Accounting Basics :

    Ted's basis in his partnership interest immediately before the distribution is $33,000: What amount of gain will the partnership recognize on the distribution, and what is Ted's basis in the land he

  • Q : What will be the transfer price....
    Accounting Basics :

    Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $175 in variable costs, plus the cost of the widget, to manufacture.

  • Q : Deductible expense in computing partnership....
    Accounting Basics :

    Which one of the following is not a deductible expense in computing partnership ordinary income?

  • Q : Item of income or deduction....
    Accounting Basics :

    A taxpayer whose fi ling status is married fi ling separately recognizes a $5,000 net short-term capital loss and a $1,000 net long-term capital gain during the year. If the taxpayer's only other it

  • Q : Tax return ricks gains and losses....
    Accounting Basics :

    These are Rick's only property transactions during the year. Once the netting process is complete, on his tax return Rick's gains and losses will be treated as:

  • Q : Example of carryover basis property....
    Accounting Basics :

    Which of the following is not an example of carryover basis property? a. Stock acquired in a wash sale b. Property inherited from a decendent dying in 2013 c. A nontaxable stock dividend

  • Q : Problem related to long-term capital gain....
    Accounting Basics :

    An individual purchased an apartment building for use in a business for $300,000 in 2005. Th e building was sold for $350,000 in October 2013. Depreciation taken was $84,000. If there is no other Se

  • Q : Loss treated on the tax return....
    Accounting Basics :

    A single taxpayer sells 3,000 shares of Section 1244 stock ("small business corporation" stock) at a loss of $125,000. How will this loss be treated on the tax return?

  • Q : Properties related to capital asset....
    Accounting Basics :

    Which of the following properties is a capital asset? a. Artwork displayed in the taxpayer's home b. Inventory

  • Q : Prepare journal entries to record summarized transactions....
    Accounting Basics :

    Prepare journal entries to record Ming's 2010 and 2011 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system. Round your

  • Q : Cost recovery-first year depreciation....
    Accounting Basics :

    Batista Corporation acquired new computer equipment on March 13, 2013, for $40,000. Batista did not elect immediate expensing under Section 179. Batista also elects not to take the additional first-

  • Q : Gross income report as a result of the damages....
    Accounting Basics :

    Iris was a professional basketball player before a career-ending injury caused by a grossly negligent driver. Iris sued the driver and collected $4 million as compensation for lost estimated future

  • Q : Gross income report as a result of the ticket....
    Accounting Basics :

    Sherika and her daughter (Xiomara) attended the concert. How much gross income should Sherika report as a result of the tickets?

  • Q : Amount of satsuki capital loss carryover....
    Accounting Basics :

    Assume the facts stated in the prior two questions. Assume further that for 2013 Satsuki will offset his wages (with any deduction related to the debt) to the maximum extent permitted by law. What i

  • Q : Determine the total increase or decrease in owner''s equity....
    Accounting Basics :

    On January 1, 2014, Alicia Masingale established Leopard Realty, which completed the following transactions during the month: Alicia Masingale transferred cash from a personal bank account to an accou

  • Q : Debtor-creditor relationship probelm....
    Accounting Basics :

    How should Satsuki treat the loss relating to this debt (assume that the debt is a nonbusiness debt that is a bona fide debt that arose from a debtor-creditor relationship)?

  • Q : Amount of charitable contribution....
    Accounting Basics :

    On the date of the contribution, Sascha's basis in the common stock was $12,000 and the fair market value was $5,000. What is the amount of charitable contribution allowed (before considering any po

  • Q : How much taxable gain will sandy recognize from the sale....
    Accounting Basics :

    Sandy and Teddy formed a partnership. Sand received a 50% interest in partnership capital and profits in exchange for contributing land with a basis of $180,000 and a FMV of $300,000 of cash.

  • Q : Deduction as a medical expense....
    Accounting Basics :

    Ovidiu incurred the following expenses during 2013. Which expense is Ovidiu LEAST likely to deduct as a medical expense (assume Ovidiu itemizes and that Ovidiu's medical expenses will exceed 10.0% o

  • Q : What is jackel''s charitable contribution deduction....
    Accounting Basics :

    Jackel, Inc. has the following information for the current tax year. Gross sales $350,000 Cost of goods sold 50,000 Dividends received(10%)40,000 Operating expenses 30,000 Charitable contributions

  • Q : Basics of net operating loss amount....
    Accounting Basics :

    What was Shala's 2013 Net Operating Loss amount assuming that she had the following items listed on her income tax return?

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