Solutions to Homework Assignments: Chapter 8
46. Indicate the amount (if any) that Michael can deduct as ordinary and necessary business
deductions in each of the following situations and explain your solution.
From time to time, Michael rents a dump t
Chapter 16 - Corporate Operations
1. [LO 1] In general terms, identify the similarities and differences between the corporate taxable
income formula and the individual taxable income fo
Property Acquisition and Cost Recovery
39. [LO 1] Jose purchased a delivery van for his business through an online auction.
His winning bid for the van was $24,500. In addition, Jose incurred the following
expenses before using
CHAPTER 3: ATTEMPT 1
Hauswirth Corporation sold (or exchanged) some manufacturing equipment in year 0. Hauswirth bought the
machinery several years ago for $85,250 and it has claimed $26,600 of depreciation expense against the equipment.
(Leave no cells b
Jimmy is the sole proprietor of a small dry cleaning business. This month Jimmy paid for his groceries by writing checks from
the checking account dedicated to the dry cleaning business. Why do you suppose Jimmy is using his business checking
Chapter 15 - Entities Overview
1. [LO 1] What are the more common legal entities used for operating a business? How are
these entities treated similarly and differently for state law purpo
CHAPTER 12 ATTEMPTS 1
Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a
measurement and purchases a $1,500 dress that is shipped to her Maryland residence using a
common carrier. Assuming that Virginia's sale
This week we will learn more about corporate formation, reorganization, and liquidation. The
focus will be on property transactions, tax-deferred corporate formation, different forms of
taxable and tax-deferred acquisitions, the tax consequences to the pa
I love this chapter! When I was working on my undergrad degree in Finance I wrote a very long and detailed paper on depreciation,
amortization, and depletion. This is one of my very favorite tax subjects. I know, Im a geek.
Explain the reasonin
(Rev. November 2014)
Department of the Treasury
Internal Revenue Service
Corporation Application for Tentative Refund
Information about Form 1139 and its separate instructions is at www.irs.gov/form1139.
Do not file with the corporations income