Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 1, Problem 13AP
Mr. and Mrs. Underhill operate a hardware store in a jurisdiction that levies both a sales tax on retail sales of tangible personalty and an annual personal property tax on business tangibles. The personal property tax is based on book value as of December 31. This year, Mr. and Mrs. Underhill purchased $840,000 of inventory for their store.
- a. Are Mr. and Mrs. Underhill required to pay sales tax on the purchase of the inventory?
- b. How can Mr. and Mrs. Underhill minimize their personal property tax by controlling the timing of their inventory purchases?
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Mr. and Mrs. Ruiz operate a hardware store in a jurisdiction that levies both a sales tax on retail sales of tangible personality and an
annual personal property tax on business tangibles. The personal property tax is based on book value as of December 31. This year
Mr. and Mrs. Ruiz purchased $840,000 of inventory for their store
Required:
a. Are Mr. and Mrs. Ruiz required to pay sales tax on the purchase of the inventory?
Yes
O No
b. How can Mr. and Mrs. Ruiz minimize their personal property tax by controlling the timing of their inventory purchases?
O Minimize inventory on hand as of December 31
O Minimize inventory on hand as of March 31
O Minimize inventory on hand as of December 1
O Minimize inventory on hand as of April 30
Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $60,200 each. Dexter's basis in each lot sold is $42,140, and he incurs total selling expenses of $2,408 on each sale.
What is the amount of Dexter's capital gain and ordinary income?
Nancy paid the following taxes during the year:
Tax on residence (for the period from March 1 through August 31)
State motor vehicle tax (based on the value of the personal use automobile)
State sales tax
State income tax
Nancy sold her personal residence on June 30 of this year under an agreement in which the real estate taxes were not prorated between the buyer and the seller. What
amount qualifies as a deduction from AGI for Nancy?
Ox $9,180
b. 55,382
$5,250
430
3,500
3,050
$7,382
Od 59,130
Chapter 1 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 1 - Prob. 1QPDCh. 1 - Prob. 2QPDCh. 1 - Prob. 3QPDCh. 1 - Prob. 4QPDCh. 1 - Prob. 5QPDCh. 1 - A local government imposed a new 2 percent tax on...Ch. 1 - Prob. 7QPDCh. 1 - Prob. 8QPDCh. 1 - Prob. 9QPDCh. 1 - Prob. 10QPD
Ch. 1 - Prob. 11QPDCh. 1 - Prob. 12QPDCh. 1 - Prob. 13QPDCh. 1 - Prob. 14QPDCh. 1 - One way for the federal government to increase tax...Ch. 1 - The Internal Revenue Code and Treasury regulations...Ch. 1 - Mr. Josh Kenney, a U.S. citizen and resident of...Ch. 1 - Prob. 2APCh. 1 - Prob. 3APCh. 1 - This year, State A raised revenues by increasing...Ch. 1 - Prob. 5APCh. 1 - Prob. 6APCh. 1 - Prob. 7APCh. 1 - Prob. 8APCh. 1 - Prob. 9APCh. 1 - Mrs. Doyle, a resident of Rhode Island, traveled...Ch. 1 - Prob. 11APCh. 1 - Prob. 12APCh. 1 - Mr. and Mrs. Underhill operate a hardware store in...Ch. 1 - Prob. 14APCh. 1 - Wallis Company produces circuit boards in a...Ch. 1 - Prob. 1IRPCh. 1 - Prob. 2IRPCh. 1 - Bailey Company, which has offices in six states,...Ch. 1 - Prob. 4IRPCh. 1 - Yarrow Company orders 500,000 of office furniture...Ch. 1 - Acme Corporation was formed under the laws of...Ch. 1 - Prob. 7IRPCh. 1 - Prob. 8IRPCh. 1 - Prob. 9IRPCh. 1 - Mr. Imhoff, age 72, has lived in Los Angeles his...Ch. 1 - Prob. 1TPCCh. 1 - KTR Company earns a 10 profit on each unit of...
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