Corporation ABC invested in a project that will generate $60,000 annual
after- tax cash flow in years 0 and 1 and $40,000 annual after- tax cash
flow in years 2, 3, and 4. Compute the NPV of these cash flows
ABC uses a 10 percent d
ACCT400 Corporate Income Tax
Midterm Exam Directions
This Assessment is worth 15% of your overall grade
Due by the end of Week 4 at 11:59 pm, ET.
Please submit one Microsoft Word Document for all parts of the test. Copy and paste any
Tax Planning Case
If DC Company sells the land to Mrs. O this year, it will realize $693,500 after-tax cash.
Cash proceeds from sale
DC's investment in the land
Profit on sale
A. PPR is unable to recognize the $35,00 loss from Soli Inc until the asset is sold
to an unrelated party. Once the asset is sold to an unrelated party, PPR can
recognize the $35,000 loss and the $75,000 purchase price from the amount
of the sale to find
Week 5 Tax Planning Case
Silo Inc. sold investment land to PPR Inc. for $ 110,000 cash. Silos
basis in the land was $ 145,000. Mr. and Mrs. J own 100 percent of
the stock of both corporations.
What is PPRs tax basis in the land purchased from Silo?
Week 3 Tax Planning Case
Company Y began business in February 2013. By the end of the
calendar year, it had billed its clients for $ 3.5 million of services and
had incurred $ 800,000 of operating expenses. As of December 31,
it had collected $ 2.9 millio