Chapter 19 problem 33
a. What is Cardinal Corporations taxable income?
$250,000 of dividend income is counted towards income, but can take 70% of dividend
received deduction under section 243. The DRD would be ($250,000* 70%) $175,000.
925 Arapahoe Street
Boulder, CO 80304
Dear Mr. Corcoran:
This letter is in response to concerns about tax treatment of the shares of stock sold of Grebe
Corporation. Originally you received 10,000 shares for $24,000 while in the current yea
Ms. Emily Patrick
36 Paradise Road
Northampton, MA 01060
Dear Ms. Patrick:
This letter is informing you about treatment of the losses for tax purposes obtained from the bankruptcy
of Teal Corporation. The IRS may go about these losses in
TAX FILE MEMORANDUM
Date: November 12, 2015
From: Jared Schneidermann, Staff Accountant
Subject: Summary of Tax Article: Tax Management Portfolios: Interest Expense Deductions, Ch.
7 How is Interest Classified
The cited article addresses some of o
ACCT 321 Fall 2015 Ch 11 Homework
Larry recently invested $20,000 (tax basis) in purchasing a limited partnership
interest. His at-risk amount is also $20,000. In addition, Larrys share of the limited
partnership loss for the year is $2,000, his share
Chapter 10- property disposition
a. Basis minus depreciation is amount to use against purchase price to determine gain or
i. If gain is more than depreciation then excess is 1231 unrecaptured gain, all else
is 1245. 1231 assets are held for more
Chapter 5- Gross income and exclusions
a. Tax benefit rulei. Itemized deductions- standard deduction rate
b. Social security benefits
i. If modified AGI+ 50% of SS benefits < or = 25,000, SS benefits not taxable
ii. Between 25-34,000, then 50% of mod.
a. Ordinary and necessary, and reasonable in amount
b. Exclusionsi. Expenditures against Public Policy
ii. Political contributions and lobbying costs
iii. Capital Expenditures
iv. Expenses associated w
Reporting and Analyzing Nonowner
E7-23. (20 minutes)
a. Total expected failures from units sold (70,000 0.02).
Average cost per failure .
Total warranty expense for the current period.
b. Total expected fa
Chapter 13 - Comparative Analysis
H . A
onzontalAna/ysis Comparative Analysis
InvestOrs are interested in makin
g manual com arlsons from period to period.
We rely on three types of comparisons to improve the decision usefulness o ina