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

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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. c. Lisa is involved in national politics and her corporation makes a campaign
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