#20
Jackson Corporation, not a dealer in securities, realizes taxable income of $80,000 from the
operation of its business. Additionally, Jackson Corporation realizes a $10,000 long-term capital
loss from the sale of marketable securities. Explain the treatment of the loss on the corporate
return for this and any other years.
#21
James Corporation purchased residential real estate in 2012 for $225,000, of which $25,000
was allocated to land and $200,000 was allocated to the building. James Corporation took
straight-line MACRS deductions of $30,000 during the years 2012-2017. In 2018, James
Corporation sold the property for $285,000, of which $60,000 is allocated to the land and
$225,000 is allocated to the building. What are the amounts and character of James
Corporation's recognized gain or loss on the sale?
#24
Newco Corporation has asked you to help determine whether it should use the accrual method
or the cash method of accounting. What are the tax issues involved in making this
determination?
#31
When computing corporate taxable income, what is the proper sequencing of deductions?
#32
Zero-tech Corporation donates the following property to an elementary school:
•Computer printer purchased three years ago for $1,000. The printer has a $500 FMV and $0
adjusted basis on contribution date.
•Computer equipment acquired one year ago at a cost of $5,000. The equipment has an $8,000
FMV and $0 adjusted basis on contribution date.
•Computer software acquired two months ago at a cost of $10,000. The software will be used
in a prekindergarten program. Its FMV on the contribution date is $10,000 and it has an
adjusted basis of $0.
a)
b)
Identify any donation qualifying for special treatment.
What is Zero-tech's charitable contribution deduction?