CHAPTER 4 PROBLEMS
Because Howard does not know how much he will receive from the sale of
automobile parts, and it is impractical to determine the cost of individual automobile
parts, he could reason that all sales proceeds are a recovery of capital un
Tentative Schedule of Course Assignments Continued
CHAPTER 7 PROBLEMS
Whether the property is sold for cash or on credit is not relevant for this
purpose. The amount realized includes both the cash received at the time
of sale and the cash to be received in the future (i.e., the payments made
ACCT 371 001
Homework Ch. 10
Pam and Jon have dividend income of $80,000 each ($160,000 / 2). The remaining $20,000 each
[($200,000 - $160,000) / 2] reduces the basis in their stock in Blue Corp. with the remainder
treated as capital g
CHAPTER 3 PROBLEMS
This statement is a fair assessment of the underlying meaning of book-tax differences.
There are many legitimate reasons that book and tax income can differ in the same
year unrelated to any potential tax evasion. Differences in enti
CH 8 HW #13, 17, 27, 31
The holding period of property received in a like-kind exchange includes the
holding period of the property given up if the property given up is a capital asset or
a 1231 asset. The vacant land held by Maria was held for invest
CHAPTER 2 - SOLUTIONS
The Tax Court must follow its own cases, the pertinent U.S. Circuit Court of Appeals, and
the Supreme Court.
The Court of Federal Claims must follow its own decisions, the Federal Circuit Court of
Appeals, and the S
CHAPTER 6 PROBLEMS
Monty must include up to $10,000 in gross income, but only to the extent of
a tax benefit in a prior year. Because the debt is a nonbusiness bad debt,
the $11,000 would have been reported as a short-term capital loss. Last
SOLUTIONS TO PROBLEM MATERIALS
Some tax considerations James should investigate include the following:
State and local income taxes.
State and local sales taxes.
State and local property taxes.
Many such taxes could affect any cost-o
CHAPTER 5 PROBLEMS
The two issues involved are whether the payment should be made and, if made, is
it deductible. If made to the representatives of a U.S. company, it would be a bribe.
Not only would it be nondeductible, it could result in criminal cha