For Each Tax Treatment Described Below, Explain the Income Tax

Essay

For each tax treatment described below, explain the income tax concept(s), which is (are) responsible for the treatment.
a.Amelia owns a 1/4 royalty interest in a uranium mine. Amelia has the owner of the mine pay 1/3 of her royalties to her son, Joel. During the current year, Amelia receives $18,000 and Joel receives $9,000 in royalty payments. Amelia has $27,000 of gross income from the royalty payments. Joel has no income.
b.Mark owns a weekend barbecue business. During the year, he purchases $900 of wood that he uses in his barbecue operation and in his personal fireplace. Mark can only deduct $550 of the wood cost as an expense of his barbecue business.
c.Andre is the sole owner of Woods Corporation. Woods sells Andre a parcel of land that it owned for $30,000. Woods had paid $45,000 for the land. Woods Corporation cannot deduct the $15,000 loss on the sale.
d.On February 20, 2017, Constance purchases 100 shares of Paris stock for $4,500. At December 31, 2017, the stock is worth $5,200. On November 8, 2018, Constance sells the stock for $5,800. Constance has no income from the stock in 2017 and a capital gain of $1,300 in 2018.
e.Barney is a consultant and is a cash basis taxpayer. On December 31, 2018, a client calls and offers to drop off a check for $1,000 in payment of his account on his way to lunch. Barney tells the client not to bother delivering it in person and instructs him to mail the check. Barney must include the $1,000 in his 2018 gross income.?