Question 1

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Accepted Answer

A) Nonrecognition of gain allowed for involuntary conversions. 
B) Net operating loss carryback and carryover provisions. 
C) Carry over of excess charitable contributions. 
D) Use of the installment method to recognize gain. 
E) Carry over of excess capital losses. 
A) Nonrecognition of gain allowed for involuntary conversions. 
B) Net operating loss carryback and carryover provisions. 
C) Carry over of excess charitable contributions. 
D) Use of the installment method to recognize gain. 
E) Carry over of excess capital losses.

Question 2

Which,if any,of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?

Accepted Answer

A) A tax holiday is granted to an out-of-state business that is searching for a new factory site. 
B) An abandoned church is converted to a restaurant. 
C) A public school is razed and turned into a city park. 
D) A local university sells a dormitory that will be converted for use as an apartment building. 
E) None of the above. 
A) A tax holiday is granted to an out-of-state business that is searching for a new factory site. 
B) An abandoned church is converted to a restaurant. 
C) A public school is razed and turned into a city park. 
D) A local university sells a dormitory that will be converted for use as an apartment building. 
E) None of the above.

Question 3

A taxpayer is considering the formation of a business that would derive some amounts of tax-exempt interest,qualified dividends,and capital gains.Explain how these income categories would be reported and taxed under the various types of entity forms discussed in the chapter.Consider the tax implications both to the entities and to their owners.

Accepted Answer

For certain business entity forms,the en

Question 4

The tax law allows,under certain conditions,deferral of gain recognition for involuntary conversions.
 a. What is the justification for this relief measure?
b. What happens if the proceeds are not entirely reinvested?

Accepted Answer

The answer of The tax law allows,under certain conditions,deferral of...

Question 5

Amber Company has $100,000 in net income in 2013 before deducting any compensation or other payment to its sole owner,Alfredo.Assume that Alfredo is in the 33% marginal tax bracket.Discuss the tax aspects of each of the following independent arrangements.(Assume that any salaries are reasonable in amount and ignore any employment tax considerations.)

Accepted Answer

@#LAT-DLM& @#LAT-DLM& c.@#LAT-DLM&Amber's tax on $ 50,000  a

Question 6

During the current year,Skylark Company had operating income of $420,000 and operating expenses of $250,000.In addition,Skylark had a long-term capital loss of $20,000,and a charitable contribution of $5,000.How does Toby,the sole owner of Skylark Company,report this information on his individual income tax return under following assumptions?

Accepted Answer

The answer of During the current year,Skylark Company had operating...

Question 7

Unlike FICA,FUTA requires that employers comply with state as well as Federal rules.

Accepted Answer

A) True 
 B)False

Question 8

Double taxation of corporate income results because dividend distributions are included in a shareholder's gross income but are not deductible by the corporation.

Accepted Answer

A) True 
 B)False

Question 9

Under the usual state inheritance tax,two heirs,a cousin and a son of the deceased,would not be taxed at the same rate.

Accepted Answer

A) True 
 B)False

Question 10

An inheritance tax is a tax on a decedent's right to pass property at death.

Accepted Answer

A) True 
 B)False

Question 11

State and local governments are sometimes forced to find ways to generate additional revenue.Comment on the pros and cons of the following procedures:
 a. Decouple what would be part of the piggyback format of the state income tax
b. Tax amnesty provisions.
c. Internet shaming

Accepted Answer

The answer of State and local governments are sometimes forced...

Question 12

Rajib is the sole shareholder of Robin Corporation,a calendar year S corporation.Robin earned net profit of $350,000 ($520,000 gross income - $170,000 operating expenses)and distributed $80,000 to Rajib.Rajib must report Robin Corporation profit of $350,000 on his Federal income tax return.

Accepted Answer

A) True 
 B)False

Question 13

The Federal excise tax on cigarettes is an example of a proportional tax.

Accepted Answer

A) True 
 B)False

Question 14

Morgan inherits her father's personal residence including all of the furnishings.She plans to add a swimming pool and sauna to the property and rent it as a furnished house.What are some of the ad valorem property tax problems Morgan can anticipate?

Accepted Answer

The real estate taxes probably will incr

Question 15

Adrian is the president and sole shareholder of Pigeon Corporation.He also lends money and rents a building to the corporation.Discuss how these business relationships between Adrian and Pigeon Corporation can help avoid double taxation.What limitations are there on the use of such relationships?

Accepted Answer

As president of Pigeon Corporation,Adria

Question 16

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

Accepted Answer

A) True 
 B)False

Question 17

States impose either a state income tax or a general sales tax,but not both types of taxes.

Accepted Answer

A) True 
 B)False

Question 18

The tax law provides various tax credits,deductions,and exclusions that are designed to encourage taxpayers to obtain additional education.These provisions can be justified on both economic and equity grounds.

Accepted Answer

A) True 
 B)False

Question 19

In terms of revenue neutrality,comment on a tax cut enacted by Congress that:
 a. contains revenue offsets.
b. includes a sunset provision

Accepted Answer

The answer of In terms of revenue neutrality,comment on a...

Question 20

Elk,a C corporation,has $370,000 operating income and $290,000 operating expenses during the year.In addition,Elk has a $10,000 long-term capital gain and a $17,000 short-term capital loss.Elk's taxable income is:

Accepted Answer

A) $63,000. 
B) $73,000. 
C) $80,000. 
D) $90,000. 
E) None of the above. 
A) $63,000. 
B) $73,000. 
C) $80,000. 
D) $90,000. 
E) None of the above.

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Which,if any,of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?

The tax law allows,under certain conditions,deferral of gain recognition for involuntary conversions. a. What is the justification for this relief measure? b. What happens if the proceeds are not entirely reinvested?

Unlike FICA,FUTA requires that employers comply with state as well as Federal rules.

Double taxation of corporate income results because dividend distributions are included in a shareholder's gross income but are not deductible by the corporation.

Under the usual state inheritance tax,two heirs,a cousin and a son of the deceased,would not be taxed at the same rate.

An inheritance tax is a tax on a decedent's right to pass property at death.

State and local governments are sometimes forced to find ways to generate additional revenue.Comment on the pros and cons of the following procedures: a. Decouple what would be part of the piggyback format of the state income tax b. Tax amnesty provisions. c. Internet shaming

Rajib is the sole shareholder of Robin Corporation,a calendar year S corporation.Robin earned net profit of $350,000 ($520,000 gross income - $170,000 operating expenses)and distributed $80,000 to Rajib.Rajib must report Robin Corporation profit of $350,000 on his Federal income tax return.

The Federal excise tax on cigarettes is an example of a proportional tax.

Morgan inherits her father's personal residence including all of the furnishings.She plans to add a swimming pool and sauna to the property and rent it as a furnished house.What are some of the ad valorem property tax problems Morgan can anticipate?

Adrian is the president and sole shareholder of Pigeon Corporation.He also lends money and rents a building to the corporation.Discuss how these business relationships between Adrian and Pigeon Corporation can help avoid double taxation.What limitations are there on the use of such relationships?

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

States impose either a state income tax or a general sales tax,but not both types of taxes.

The tax law provides various tax credits,deductions,and exclusions that are designed to encourage taxpayers to obtain additional education.These provisions can be justified on both economic and equity grounds.

In terms of revenue neutrality,comment on a tax cut enacted by Congress that: a. contains revenue offsets. b. includes a sunset provision

Elk,a C corporation,has $370,000 operating income and $290,000 operating expenses during the year.In addition,Elk has a $10,000 long-term capital gain and a $17,000 short-term capital loss.Elk's taxable income is:

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, gain and Loss, and Nontaxable Exchange

Property Transactions: Capital Gains and Losses, section 1231, and Recapture Provisions

Corporations: Organization, capital Structure, and Operating Rules

Corporations: Earnings Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and Corporate Alternative Minimum Tax

Comparative Forms of Doing Business

Introduction to the Taxation of Individuals

Individuals As Employees and Proprietors

Filters

Exam 1: Introduction to Taxation

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Which,if any,of the following transactions will decrease a taxing jurisdiction's ad valorem tax revenue imposed on real estate?

The tax law allows,under certain conditions,deferral of gain recognition for involuntary conversions. a. What is the justification for this relief measure? b. What happens if the proceeds are not entirely reinvested?

Unlike FICA,FUTA requires that employers comply with state as well as Federal rules.

Double taxation of corporate income results because dividend distributions are included in a shareholder's gross income but are not deductible by the corporation.

Under the usual state inheritance tax,two heirs,a cousin and a son of the deceased,would not be taxed at the same rate.

An inheritance tax is a tax on a decedent's right to pass property at death.

State and local governments are sometimes forced to find ways to generate additional revenue.Comment on the pros and cons of the following procedures: a. Decouple what would be part of the piggyback format of the state income tax b. Tax amnesty provisions. c. Internet shaming

Rajib is the sole shareholder of Robin Corporation,a calendar year S corporation.Robin earned net profit of $350,000 ($520,000 gross income - $170,000 operating expenses)and distributed $80,000 to Rajib.Rajib must report Robin Corporation profit of $350,000 on his Federal income tax return.

The Federal excise tax on cigarettes is an example of a proportional tax.

Morgan inherits her father's personal residence including all of the furnishings.She plans to add a swimming pool and sauna to the property and rent it as a furnished house.What are some of the ad valorem property tax problems Morgan can anticipate?

Adrian is the president and sole shareholder of Pigeon Corporation.He also lends money and rents a building to the corporation.Discuss how these business relationships between Adrian and Pigeon Corporation can help avoid double taxation.What limitations are there on the use of such relationships?

The annual exclusion,currently $14,000,is available for gift and estate tax purposes.

States impose either a state income tax or a general sales tax,but not both types of taxes.

The tax law provides various tax credits,deductions,and exclusions that are designed to encourage taxpayers to obtain additional education.These provisions can be justified on both economic and equity grounds.

In terms of revenue neutrality,comment on a tax cut enacted by Congress that: a. contains revenue offsets. b. includes a sunset provision

Elk,a C corporation,has $370,000 operating income and $290,000 operating expenses during the year.In addition,Elk has a $10,000 long-term capital gain and a $17,000 short-term capital loss.Elk's taxable income is:

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, gain and Loss, and Nontaxable Exchange

Property Transactions: Capital Gains and Losses, section 1231, and Recapture Provisions

Corporations: Organization, capital Structure, and Operating Rules

Corporations: Earnings Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and Corporate Alternative Minimum Tax

Comparative Forms of Doing Business

Introduction to the Taxation of Individuals

Individuals As Employees and Proprietors

Filters