MIDTERM EXAM IN-CLASS
Each of the following questions is worth 5 points.
1. Internal Revenue Code (IRC)
Which section of the IRC imposes the estate tax? Sec. 2001 What are the last two P.L.s
amending this section? What is
On July 1 of year 1, Riverside, Corp. (RC), a calendar-year taxpayer, acquired the assets
of another business in a taxable acquisition. When the purchase price was allocated to
the assets purchased, RC determined it had a basis of $1,200,000 in g
Time Inc. (a C corporation) reported $1,000,000 of taxable income in the current year.
During the year it distributed $100,000 as dividends to its shareholders as follows:
$5,000 to Guy a 5% individual shareholder.
$15,000 to Little Rock Corp.
Answer each of these problems by discussing the law and how it applies to the facts. Be sure to
explain completely. If there are facts that you do not know (and there are) but are needed to
answer, then explain, and discuss
Goods alike naturally or by trade usage.
Shipment Contract: the seller is required or authorized to ship goods by
carrier, such as a trucking company.
Destination Contract: the seller is required to deliver the goods to a particular
Whether Donald Trump, novice politician, is
making money by running for the White
House and breaking some big campaign
finance rules along the way?
Trump pays more than $6 million from his campaign for businesses, assets
and services bearing his name: hol
Problem Due 9/13
1. Compute the partner's basis in the partnership
Liabilities (with recourse)
B (30% P&L)
L (50% P&L)
T (20% P&L)
2. Assume that T con
Dr. France Belanger
ChoicePoint, a company that was spun-off from Equifax, was a leading personal data broker in
the U.S., using information technology, to help assess risks and detect fraud. The company
initially focused on data
Woodward Corporation reported pre-tax book income of $1,000,000. Included in the
computation were favorable temporary differences of $200,000, unfavorable temporary
differences of $50,000, and favorable permanent differences of $100,000. Assuming