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Federal Taxation 12/8/2015 Notes

Roger CPA Review Questions Chapter 8
1.
I : Inventory produces ordinary income.
II : 1231 Asset
III: Not an Asset. Treasury Stock is Stockholder’s Equity
Answer is D
2.
Fair Value, long-term capital gain.
Answer is A
3. 14,000 of 25,000 = 11,000
Carry 11,000 forward 5 years
Answer is C
4.
April 1 : Short term capital gain.
May 15 : Ordinary
July 12 : Long term capital gain.
November 3 : Long term capital loss.
December 9: Short term capital loss
2,000-3,000+7,000 = 6,000
Answer is D
6.
21,000
Cost 20,000
MACRS
(8,000)
A.B. 12,000
(12,000)
Gain
9,000
Answer is C
7.
Answer is D

X Tax Rate) Income Tax Expense Income Tax Payable xxx xxx Charitable Contributions and Contributions How to do Deduction for Bad Debts : Percentage of aging of receivables. Leasing Transactions Unrealized Gains and Losses for Trading Securities .12/10/2015 (Book Inc.