Chapter 14 Homework Problems
Complete each problem and show your work in a reasonably neat fashion.
Put your name on each page and staple or clip your pages together.
Tyrone Corp, a calendar year C corporation, realized taxable income of $36,000 from
its regular business operations in Year 1.
In addition, Tyrone had the following
capital gains and losses:
ST capital gain
ST capital loss
LT capital gain
LT capital loss
Tyrone did not realize any other capital gains and losses since starting operations.
What is Tyrone’s total taxable income for Year 1?
Nettting ST=8500-4000=4,500 gain
Netting LT 1,500-3,500=2,000 loss
Netting both 2,500
Other tax income 36,000+2,500=38,500 of total taxable income
Austin is a single taxpayer with Year 1 taxable income of $100,000, exclusive of
capital gains and losses.
Austin had a net long term capital loss of $8,000 in Year 1.
What amount of capital loss can Austin offset against his ordinary income?
Up to $3,000 of losses can be deducted by an individual taxpayer in a year so $3,000.
On January 2, Year 3, Tasha Corp purchased and placed into service 7-year MACRS
tangible property costing $100,000.
On December 31, Year 5, Tasha sold the