Chapter 6 Solution Manual - South Western Federal Tax 2012
CHAPTER 6 DEDUCTIONS AND LOSSES: IN GENERAL SOLUTIONS TO PROBLEM MATERIALS
Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Learning Objective LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 2 LO 2 LO 2 LO 2 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3
Topic Allowed income and deductions Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI; deductions disallowance Ordinary and necessary requirement Reasonable compensation Business versus nonbusiness losses Reporting procedures Method of accounting: cash basis Prepayment provision for cash basis taxpayer All events and economic performance tests Reserves and economic performance test Illegal activities Domestic and foreign bribes Legal expenses Illegal activities Political contributions Political contributions and lobbying expenditures Excessive executive compensation Investigation of a business
Status: Present Edition Unchanged New New Modified Unchanged Unchanged New Unchanged New New Unchanged New Modified Unchanged New Unchanged Unchanged Unchanged Modified Unchanged Unchanged Unchanged New
Q/P in Prior Edition 1 4 5 6 8 11 13 14
16 17 18 19 20 21 22
Instructor: For difficulty, timing, and assessment information about each item, see p. 6-4.
6-1
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6-2
2012 Comprehensive Volume/Solutions Manual Status: Present Edition New Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged New Modified Modified Updated Unchanged Unchanged New Modified New Unchanged Modified New New Unchanged Unchanged New New New Updated Unchanged Modified Unchanged Unchanged Unchanged New Unchanged Modified Unchanged New Modified 44 45 Q/P in Prior Edition 25 26 27 28 29 30 32 33 34 35 36 38 40 41
Question/ Problem 24 25 26 27 28 29
Question/ Problem 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Learning Objective LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 1 LO 2 LO 2 LO 2 LO 2 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3 LO 3
Topic Allowed income and deductions Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI Deductions for and from AGI; deductions disallowance Ordinary and necessary requirement Reasonable compensation Business versus nonbusiness losses Reporting procedures Method of accounting: cash basis Prepayment provision for cash basis taxpayer All events and economic performance tests Reserves and economic performance test Illegal activities Domestic and foreign bribes Legal expenses Illegal activities Political contributions Political contributions and lobbying expenditures Excessive executive compensation Investigation of a business
Status: Present Edition Unchanged New New Modified Unchanged Unchanged New Unchanged New New Unchanged New Modified Unchanged New Unchanged Unchanged Unchanged Modified Unchanged Unchanged Unchanged New
Q/P in Prior Edition 1 4 5 6 8 11 13 14
16 17 18 19 20 21 22
Instructor: For difficulty, timing, and assessment information about each item, see p. 6-4.
6-1
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6-2
2012 Comprehensive Volume/Solutions Manual Status: Present Edition New Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged New Modified Modified Updated Unchanged Unchanged New Modified New Unchanged Modified New New Unchanged Unchanged New New New Updated Unchanged Modified Unchanged Unchanged Unchanged New Unchanged Modified Unchanged New Modified 44 45 Q/P in Prior Edition 25 26 27 28 29 30 32 33 34 35 36 38 40 41
Question/ Problem 24 25 26 27 28 29