M504 Quiz 8 Solutions - Name: Class: Date: m Mgmt 504 -...

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Unformatted text preview: Name: Class: Date: m Mgmt 504 - Quiz 8 — Mar 11, 2010 fa 4, a rm» Short Answer gr) 1. For each of the following situations, determine whether the item is deductible, and discuss any limitations, which might be placed on the deduction. a. Charles owns an office building that he rents out to various businesses. During the current year, rental income from the building is $95,000. Charles‘s allowable expenses relating to the office building are $150,000. flew—L. 55W PAa/‘(gf’uyb’ IF amt-E? Is W Jmcr C‘?$.¢:a FZJT’SDDD? :_ “5/3 Doc L955 —-;ua 4.1er I;- CIM-n—éfi’s is an) rear/us chum Dauoflau k/fltm f“: ‘29:», by“? [‘7‘ (3' /é‘r—J£JD our IF ms ’34:?” 3mm: f£"‘3-“°""”55" b. Jon sells stock to an unrelated party at a $70,000 loss during the current year. #7365?» fin) Muaf‘ PJ‘s?" [Lu-17" Flo-e #7965“ fiéflrfief CAM/7:61, “#105 y‘z—aasa_ //" ME 4772.4. Af—fhs at . pg:— aM.M buss , at": Half “water the r“ 3970' 5523 1—559 . 53/9491: at“. W:- flfl— £4655" y up“ i ,gym MJ JET-71"“; Ly ‘ (.4 497324452: f: F E: ‘9. 577m I PM may. 94”.“ / fl: ’ (J49me ’F' I 530‘” fittest-r flusfnuEf: gram, 33A) HIQ‘V 2-flflé7‘ov - W106 9 D, I amuarz—D/ea‘h 6'05- J’L’n’ 7”“ ’J fLo 43—55 c. Lee sold furniture at a loss of $5,000 during the current year. {if fly: fisMZ;-p/,£ 4195 51-5512} [AJ 1“ /3¢'79'f.)d"" a): .909:qu ‘ E Ag HW flébud" Til-6 ’595‘3 A74 aka/In); ausruefiu flflmfii 47‘ 775’ Jr; TM Paloma-1m! u A- ymaflos- “5" M I Name: Q") 2. The Connell Corporation is incorporated in 2005 and had no capital asset transactions during the year. From 2006 through 2009, the company had the following capital gains and losses: 2% 200—7 2008 £09 Capital Gains $18,000 S 12,000 $ 20,000 $ 21,000 Capital Losses 57,000) (16,000 ! £26,000) (29,000 péréflru U” Id... L‘.-¢I> Ciao-3 71:36:55 If Connell's marginal ax r te during eachéthese years is 3 %, what is the effect of Connell‘s capital gains and losses on the amount of tax due each year? /§3zrDD "‘ 7 9"" W .. :9 v M * /// 5g? x356; $1374 fax-J ft” 24'"— fl 0 4/ 360 :20 7 w [5M4 [a zama 2%)”) an“? 5 ' fhfiflL <4/Doo) c: . F: it all!" 2:33:— 77: and. 9/582”; fl <2 cm.) clever:sz 5’44”; f ...
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This note was uploaded on 05/01/2010 for the course MGMT 504 taught by Professor Hatcher during the Spring '08 term at Purdue University-West Lafayette.

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M504 Quiz 8 Solutions - Name: Class: Date: m Mgmt 504 -...

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