Chapter%206%20Examples%20-%20Questions - ACCY 312 Examples:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCY 312 Examples: Chapter 6 1. Lisa, a cash-basis calendar-year taxpayer, owns 100% of Green Estate, Inc., an accrual basis calendar-year corporate client of yours. The corporation is not publicly traded. Lisa was at a picnic and overheard some of her friends talking about their corporate tax returns and the income/expenses reported on the returns. She comes to you and asks you whether or not the following are either part of taxable gross income or tax deductible. From the perspective of Green Estate Inc. , indicate (1) whether or not the item is currently deductible or currently includible in its gross income for 2008; (2) the dollar amount, if any; and (3) a short explanation of why or why not. a. Lisa’s corporation pays a consulting company $8,000 to lobby the county environmental commission for permission to construct a holding pond on the firm’s property. b. Green Estate Inc.’s delivery drivers have received a number of parking tickets while working in a downtown area. The tickets total $2,500 for the year.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/17/2011 for the course ACCY 312 taught by Professor Vare during the Fall '11 term at University of Illinois at Urbana–Champaign.

Page1 / 2

Chapter%206%20Examples%20-%20Questions - ACCY 312 Examples:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online