Tax drill original issue discount on january 1 2018

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Tax Drill - Original Issue DiscountOn January 1, 2018, Kunto, a cash basis taxpayer, pays $46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $50,000.In your computations, round any amounts to the nearest dollar.Kunto has $1849income for 2018 and $1923for 2019.Tax Drill - Revenue Procedure 2004-34Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month, and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2018, Bigham sold the following customer contracts:Length of contract Total Proceeds12 months$14,00024 months$24,000Determine the income to be recognized in 2018 and 2019.
Tax Drill - Revenue Procedure 2004-34Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month, and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2018, Bigham sold the following customer contracts:Length of contract Total Proceeds12 months$14,00024 months$24,000Determine the income to be recognized in 2018 and 2019.
Length of Contract2018 Income2019 Income12 months$7000$700024 months$6000$18000Tax Drill - Divorce SettlementsCasper and Cecile are divorced in 2018. As part of the divorce settlement, Casper transferred stockto Cecile. Casper purchased the stock for $25,000, and it had a market value of $43,000 on the date of the transfer. Cecile sold the stock a month after receiving it for $40,000. In addition Casper is required to pay Cecile $1,500 a month in alimony. He made five payment to her during the year.What are the tax consequences for Casper and Cecile regarding these transactions? If an amount iszero, enter "$0".Casper recognizes no gain or loss on the transfer of the stock. He receives a deduction for the $7,500 alimony paid.Cecile recognizes no gain or loss on the transfer of the stock. She has taxable income the $7,500 alimony received. When she sells the stock Cecile reports a gain of $from .

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