{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FINAL-SPRING-2007

# FINAL-SPRING-2007 - Spring 2007 Final Econ 138B Student 1...

This preview shows pages 1–4. Sign up to view the full content.

Spring 2007 Final Econ 138B Student: ___________________________________________________________________________ 1. The tax law is not neutral if a taxpayer receives 80% ownership in a corporation in exchange for A. machinery. B. cash. C. a patent purchased 5 years ago. D. personal services. 2. On January 21, 2005, Ron purchased 100 shares of Bad Company common stock for \$54,500. Ron sold all of the Bad Company stock on May 18, 2006 for \$24,250. On June 30, 2006, Ron repurchased 100 shares of Bad Company stock for \$5,000. The new shares are sold on July 31, 2007 for \$15,500. How much gain/loss does Andy recognize in 2006 with respect to the Bad Company stock? 3. Randolph Scott operates as a sole proprietorship. This year his net profit was \$10,570. For tax purposes this amount should be reported on 4. Sue's net or "take-home" pay was \$23,205. Her only payroll deductions were for payroll taxes. Federal income tax withholdings totaled \$4,500. What was the amount of her gross wages for the year? A. \$ 25,736 B. \$ 30,000 C. \$ 29,536

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
5. Which one of the following statements about partnerships is FALSE? 6. Mutt and Jeff are partners and share profits and losses equally. Partnership operations for the current tax year were: Mutt's tax basis in his partnership interest on January 1, 2006, was \$12,000. What is his basis on January 1, 2007? A. \$ 25,000 B. \$ 37,000 C. \$ 13,000 D. \$ 27,000 7. Alex is a partner in a calendar year partnership. His Schedule K-1 showed the following: Ordinary Profit: \$41,000 Short-term Capital Loss: \$1,500 He has a \$7,000 loss carryforward from the partnership last year. What is his tax basis in his partnership interest, after all adjustments, on December 31? 8. Which of the following statements is correct in regard to S corporations?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 27

FINAL-SPRING-2007 - Spring 2007 Final Econ 138B Student 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online