Chapter 9 Assignment
A. Otter as a partnership is not a tax paying entity. Its profits/losses and separate items
impact the partners directly. The partnerships tax form, 1065, reports net profit of
$150,000 and the $20,000 tax exempt inte
Chapter 1 Assignment
2. Distinguish between taxes that are proportional and those that are progressive.
A progressive tax is one that increases as the tax base increases and a proportional tax is a
constant amount, regardless of the tax base.
the legend provided, classify each of the following citations
as to the type of court.
D = District Court
T = Tax Court
C = Court of Federal Claims
A = Circuit Court of Appeals
U = Supreme Court
N = None of the abov
8) Benny would have $62,000 of long term capital loss from the sale of the bonds.
10) I think the best option for Mac would be to go with the second option and take the 20% in
stock unless Mac is completely broke and in need of money
7-2) Technically, I dont believe that Meg committed any tax fraud as long as she followed
through with the rent-to-buy option. Although, I do not think that what she did was 100% ethical
especially since she did not have any true int
Chapter 3 Assignment
5. Temporary differences are tax related items that appear in the entitys financial statements
and its tax return, but in different time periods. Permanent differences are tax related items that
appear in the entitys finan