• Q : Determine the amount of net capital loss carried back....
    Accounting Basics :

    Lass Corporation reports a $25,000 net capital loss this year. The corporation reports the following net capital gains during the past three years.

  • Q : Interest free loan from the us government....
    Accounting Basics :

    Which of the following items most resembles an interest free loan from the U.S. government?

  • Q : Potential percentage limitation....
    Accounting Basics :

    Mazihel contributed some inventory from his sole proprietorship to a public charity for its use. On the date of the contribution, Mazihel's basis in the inventory was $15,000 and the fair market val

  • Q : Problem regarding cash-basis taxpayer....
    Accounting Basics :

    Sophie is a cash-basis taxpayer. Which doctrine will most likely limit Sophie's ability to choose the year in which to recognize income?

  • Q : Basics of bonus depreciation....
    Accounting Basics :

    During 2013, 7-year MACRS property was placed in service by Stenley, a calendar-year taxpayer. Assume that Stenley does NOT make a Section 179 election or take any bonus depreciation. The property w

  • Q : Calculating largest tax deduction possible....
    Accounting Basics :

    Compute the largest tax deduction possible in 2013 for the equipment (consider the Section 179 election, Bonus Depreciation, and MACRS, if applicable):

  • Q : Annuity payments and gross income....
    Accounting Basics :

    Under the annuity, Kimberly will receive payments of $370 for each month of annuity's life. What amount of the annuity payments may be excluded from Kimberly's Gross Income for 2013 (assume all 12 m

  • Q : Recognizing the income problem....
    Accounting Basics :

    If Suma is insolvent with assets of $30,000 and liabilities of $45,000 and one of Suma's creditors then cancels a debt of $25,000, what amount must Suma recognize as income?

  • Q : Casualty loss amount-deduct on return....
    Accounting Basics :

    Gabriel carried no collision insurance and Jose was also an uninsured motorist. Assume Gabriel itemizes deductions in 2013. What is the casualty loss amount that Gabriel may deduct on his return?

  • Q : Potential deductions resulting from bonus deprecation....
    Accounting Basics :

    Assume the same facts as in the previous question. However, for this question, assume that Bethsie purchased the business equipment for $2,300,000 (instead of $700,000). What is the most that may be

  • Q : Amount of income-tax return from transactions....
    Accounting Basics :

    As a result of the lease with Anne-Emilie, Yuliet earned net rental income of $12,000 (for 2013). What amount of income should Yuliet's 2013 tax return include from these transactions?

  • Q : Amount of income-tax return from transactions....
    Accounting Basics :

    As a result of the lease with Anne-Emilie, Yuliet earned net rental income of $12,000 (for 2013). What amount of income should Yuliet's 2013 tax return include from these transactions?

  • Q : Problem related to gross income....
    Accounting Basics :

    Assume that Mariana received some unique payments in 2013. Which of the following items may Mariana exclude from gross income?

  • Q : Itemized deductions and mortgage interest....
    Accounting Basics :

    In 2013, they also had AGI of $600,000 and preliminary itemized deductions of $40,000. In 2012 and 2013 their itemized deductions include mortgage interest. Which of the following is TRUE?

  • Q : Problem regarding self-employment taxes....
    Accounting Basics :

    John, a single taxpayer, had 2013 wages of $75,000 from his job at Big Company, Inc. What is John's AGI if he has the following (and only the following) additional items in 2013? Ignore any deductio

  • Q : Robert taxable income....
    Accounting Basics :

    What is Robert's taxable income for 2013? Assume Robert is 36 years old and is single and has no dependents. Assume further that Robert's 2013 AGI is $72,000 and that he has no itemized deductions.

  • Q : Determine the report of gross income....
    Accounting Basics :

    Randolph and Zoff agree that the security deposit will be returned by Zoff at the end of the lease. How much gross income should Zoff report for 2013 as a result of these items?

  • Q : Tax liability by voluntarily assigning income....
    Accounting Basics :

    Which doctrine will most likely prevent Nicole from reducing her tax liability by voluntarily assigning her income to another taxpayer?

  • Q : Income taxation and partnership....
    Accounting Basics :

    A few years ago, Julio and Jenny formed a partnership called "JJs." Which of the following is most likely TRUE regarding the U.S. income taxation of Julio, Jenny and JJs?

  • Q : Itemized deductions and taxable income....
    Accounting Basics :

    What is Paula's taxable income for 2013? Assume she is single and claimed THREE dependent children, David, John and Ronide. Assume further that Paula's AGI is $52,000 and that her itemized deduction

  • Q : Problem associated to charitable contribution....
    Accounting Basics :

    What is Mercedes's Taxable Income for 2013? Assume she is 35 years old and is single and has no dependents. Assume further that Mercedes's AGI is $60,000 and that she made a charitable contribution

  • Q : Manuel standard deduction....
    Accounting Basics :

    In 2013, Manuel, age 16, had $600 of interest from a certificate of deposit and $3,000 from working as a waiter. Assume Manuel is claimed by his parents as a dependent. What is Manuel's standard ded

  • Q : Determine the taxable income....
    Accounting Basics :

    Juan and Bettyna, ages 34 and 31, are married and file a joint return. In addition to having THREE dependent children (Talha, Maidelin, and Nicholas), Juan and Bettyna have adjusted gross income ("A

  • Q : Stock in warbler corporation....
    Accounting Basics :

    Kate owns all the stock in Warbler Corporation. Kate has a basis of $25,000 in the Warbler stock, which currently has a fair market value of $150,000. Warbler is merged into Wren Corporation.

  • Q : Shareholder in the acquired corporation problem....
    Accounting Basics :

    Holly Wreath, a shareholder in the acquired corporation, turned in 100 shares of common stock with a basis of $4,200. In return she received voting convertible preferred stock worth $4,700 and a deb

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