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Dave formed Shull Company and transferred land ($100,000 fair market value; $40,000 adjusted basis) and equipment ($50,000 fair market value; $10,000 adjusted basis) in exchange for 100 shares of st
During the year, Caroly lives with Torie in his home for 10 months and for 2 months in her own home. Under a multiple support agreement, who could qualify for the dependency deduction for Carolyn?
Kimberly wants to sell the stock (a very large gain would result from the sale) but wants to be sure the gain qualifies for the 50 percent exclusion. When should Kimberly sell the stock in order to
On August 10, 2009, an investor purchased 1,000 shares of Planet Corporation for $12,000. On January 2, 2010, the stock became worthless. What is the recognized gain or loss and how is it classified
Ben Brown transferred property that had an adjusted basis to him of $40,000 and a fair market value of $50,000 to Crackers Corporation in exchange for 100 percent of Crackers's only class of stock a
Broker's commissions and other selling expenses amounted to $30,000. They purchased a new residence in June for $250,000. What is the realized gain?
Comic Books Corporation, a calendar year corporation, had a net operating loss of $50,000 for 2010. Comic Books made a proper election to forgo the carryback period. For 2011, Comic Books correctly
Vivian and Leonard exchange real estate in a like-kind exchange. Vivian's basis in the real estate, subject to a $150,000 mortgage, is $220,000 and the fair market value is $300,000. She receives re
Both losses qualify under Code Sec. 1244. Vera files jointly with her husband. What is the amount and character of Vera's loss to be reported on their joint return for 2010?
Also in 2009, Jose pays $1,000 (the regular retail price) for season tickets for himself and his wife. For these items, how much qualifies as a charitable contribution?
Hoover, Inc. had gross receipts from operations of $230,000, operating and other expenses of $310,000, and dividends received from a 45 percent-owned domestic corporation of $120,000. Hoover's tax p
Victoria, whose husband died in December 2008, maintains a household in which her dependent son lives. What is Victoria's filing status for the tax year 2010?
Exclusive of capital transactions, Pixie Corp. had $100,000 of taxable income. Its capital gains and losses were: Pixie's taxable income for the year was:
On August 1, 2009, Moore leases and places in service a passenger automobile. The lease will run for five years and the payments are $600 per month. During 2009, he uses his car 80% for business and
On the average, 90% of the motel rooms were occupied. As a result of this rent-free use of a room, what Daisy is required to include in gross income:
Prior to a charitable gift to the Plato University of land with a basis of $6,000 and a value of $13,000, All-Set, Inc. had taxable income of $50,000. If the dividends-received deduction was $80,000
Kobe, age 19, is a full-time student at State College and a candidate for a bachelor's degree. During 2009, he received the following payments:
One year Potter, Inc. had gross income from sales of $210,000, business expenses of $230,000, and dividend income from U.S. corporations of $150,000. Potter's 80 percent dividends-received deduction
Deductible expenses paid in connection with the consulting service amount to $6,000. Eleanor also has a recognized long-term capital gain of $1,000 from the sale of a stock investment. what She must
Evan Erman transferred inventory to a corporation in a Code Sec. 351 transaction. His basis in the inventory was $10,000 and its value was $8,000. If he received $2,000 in cash and 100 shares of sto
If Doris itemizes her deductions for 2010, what is the amount deductible for interest expense as an itemized deduction ?
Sandra Sherman incorporates her apartment building. It has a basis of $50,000, a value of $150,000, is subject to a mortgage of $70,000 and has a depreciation recapture potential of $12,000. If Sand
Candice, are allowed 5 years in which to acquire the additional year of education. Pursuant to this requirement, Candice spends her 2010 summer break attending University of Alabama taking education
Rodriguez Corporation issues 12,000 shares of its common stock for $182,700 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
Cornelia incurred the following expenses for her dependent son during the current year:$2,750 How much may Cornelia consider in computing her itemized deductions?