Tax Consequences of Amanda selling her stock: either to another stockholder or to the corporation.

I need help in understanding what would be the tax consequences of the two options to the three sisters, who are active in managing Delray. Amanda, Sue, and Mary each own 100 of the 300 outstanding shares of Delray Corporation stock. Amanda wants to sell her shares, which have a $40,000 basis and a $100,000 FMV. Either Sue and/or Mary can purchase her shares, 50 shares each, or Delray can redeem all of Amanda's shares. Delray has a $150,000 E&P balance.

Travel and Entertainment expenses for Monique: For AGI or from AGI

Monique is a self-employed manufacturer’s representative who solicits business for clients and receives a commission based on sales. She incurs the following expenditures during the current year: Airfare and lodging while away from home overnight $ 4,000 Business meals while traveling at which business is discussed 1,000 Local transportation costs for automobile,parking, tolls, etc. (business-related) 2,000 Commuting expenses 1,000 Local entertainment of customers 2,000 Total: 10,000 a. Which of the expenditures listed above (if any) are deductible by Monique? b. Are each of these items classified as for AGI or from AGI deductions? c. How would your answers to Parts a and b chan... click for more

Tax question

How would you explain the difference in retained earnings and E & P to a client who questions your preparation of a tax return?

Multiple choice in depreciation, cost recovery, amortization and depletion

Hazel purchased a new business asset (five-year property) on November 30, 2007, at a cost of $100,000. This was the only asset acquired by Hazel during 2007. On January 7, 2008, Hazel placed the asset in service. She did not elect to expense any of the asset cost under § 179, nor did she elect straight-line cost recovery. On October 25, 2009, Hazel sold the asset. Determine the cost recovery for 2009. a. $9,600. b. $16,000. c. $26,000. d. $38,000. e. None of the above. Bonnie purchased a new business asset (five-year property) on March 10, 2007, at a cost of $20,000. She also purchased a new business asset (seven-year property) on November 20, 2007, at a cost of $13,000. Bonnie did n... click for more

Taxation Problems

Please help with attached Taxation Problems. If someone can complete I will make them the only OTA.