Bush LLC purchased a rental house and land during 2025 for $150,000. The purchase price was allocated as follows: $100,000 to the rental house and $50,000 to the land. The property was placed in service on May 22, 2025. Calculate Bush’s maximum depreciation for 2025:Year12345678910111212.461%2.247%2.033%1.819%1.605%1.391%1.177%0.963%0.749%0.535%0.321%0.107%2-392.564%2.564%2.564%2.564%2.564%2.564%2.564%2.564%2.564%2.564%2.564%2.564%400.107%0.321%0.535%0.749%0.963%1.177%1.391%1.605%1.819%2.033%2.247%2.461%

Monroe Inc. purchased furniture (7-year property) on April 20, 2022 with a basis of $20,000 and used the mid-quarter convention. On December 15, 2025 (the fourth year) Monroe disposed of the property. Calculate the maximum depreciation expense for 2025 (ignore §179 and bonus depreciation).Half-Year Convention Year 4: 5-year 11.52%; 7-year 12.49%. Mid-Quarter Convention Quarter 1 Year 4: 5-year 11.01%; 7-year 10.93%. Mid-Quarter Convention Quarter 2 Year 4: 5-year 11.37%; 7-year 11.97%. Mid-Quarter Convention Quarter 3 Year 4: 5-year 12.24%; 7-year 13.02%. Mid-Quarter Convention Quarter 4 Year 4: 5-year 13.68%; 7-year 14.06%

Abraham Company purchased a total of $3,903,700 tangible personal property in 2025. How much of this cost can Abraham expense under §179?

Taylor Company placed in service on May 19, 2025 machinery and equipment (7-year property) with a basis of $3,860,000. Assume that Taylor has sufficient income to avoid any limitations. Calculate the maximum depreciation expense for 2023.Half-Year Convention Year 1: 5-year 20.00%; 7-year 14.29%. Mid-Quarter Convention Quarter 1 Year 1: 5-year 35.00%; 7-year 25.00%. Mid-Quarter Convention Quarter 2 Year 1: 5-year 25.00%; 7-year 17.85%. Mid-Quarter Convention Quarter 3 Year 1: 5-year 15.00%; 7-year 10.71%. Mid-Quarter Convention Quarter 4 Year 1: 5-year 5.00%; 7-year 3.57%

Lincoln Corporation reported the following items of income and expenses for 2023:  Gross income – $600,000; Dividend income from a 30% owned corporation – $100,000; Operating expenses – $400,000.  What is Lincoln’s taxable income for 2023?

In 2025 Kennedy Inc. reported a net capital loss of $30,000. It reported net capital gains of $14,000 in 2024 and $27,000 in 2026. What is the amount and nature of the book-tax difference in 2026 related to the net capital carryover?

James and Dolley form Madison Corporation.  James transfers land (FMV $20,000; A/B $18,000) in exchange for 50% of the Madison Corporation stock.  Dolley transfers equipment that originally cost $28,000 on which she has taken $5,000 in depreciation deductions.  The equipment has a FMV of $25,000.  Dolley receives 50% of the Madison Corporation stock and a $5,000 short-term note receivable.  Which statement below is correct?

Under a plan of complete liquidation, Adams Corporation distributes land (FMV $400,000; A/B $300,000) to John, a 25% shareholder.  John has a $200,000 basis in his Adams Corporation stock.  The land is inventory in the hands of Adams Corporation.  Adams Corporation must recognize

Reagan Corporation (a C corporation) was formed in 2022 and is a fiscal-year taxpayer with a June 30 year-end. Reagan wants to make an S election for its tax year beginning in 2025. The election must be made by

George owns a 10% interest in the Bush Partnership from January 1 through March 31 (the 91st day of the tax year) of 2025. On April 1, 2025 George buys an additional 10% interest in the partnership. On July 1, 2025 (the 182nd day of the year) George buys an additional 20% interest in the partnership. Bush Partnership’s ordinary income is $156,800 and it is earned evenly throughout the year. George’s distributive share of the ordinary income is