If a taxpayer places a $50,000 machine in service in February, and in November a $10 million building is placed in service, the mid-quarter convention will apply.

KNOX Partnership has the following revenues, expenses, gains and losses:Sales Revenue$500,000Cost of Goods Sold$200,000MACRS Depreciation$50,000Municipal Bond Interest$10,000Guaranteed Payment to Partner$30,000Long-term Capital Gains$8,000Employee Wages$120,000Determine KNOX’s ordinary business income (loss).

Felco Inc. began business operations on November 1, incurring start-up costs totaling $51,000. Which of the following is correct (round final calculations to whole dollar)?

Assuming no elections are made, under §351 Ginger contributes property with basis to her of $100,000 and fair market value of $75,000 to Spice Corp. Which of the following statements is correct related to this property contribution?

Shell Corp began business operations on February 1 of the current year and generated gross receipts of $29 million as of December 31, its calendar year-end. Which of the following statements is correct?

In a transaction that qualifies for tax-deferred treatment, such as §351 where a shareholder contributes property to a corporation in exchange for stock resulting in 80% control of voting and total shares, which of the following statements is correct?

Each of the following is a common exemption/exclusion from state sales/use tax except:

In the current year, Nash Corporation donated $250,000 cash to a qualifying charity. For the year, Nash had current year taxable income of $1,980,000 before deducting the donation and a NOL carryover from last year in the amount of $25,000. What amount of the donation is Nash allowed to deduct in the current year?

The control level of arousal and alertness is called:

Ultraawesome Imaging is one of the nation’s biggest manufacturers and distributors of ultrasound machines.  Due to the success of its marketing and the superiority of its products, it has gained a 60% market share of ultrasound machines in 8 of the 10 largest healthcare markets in the country.  New-Fangled Ultrasounds is a new ultrasound manufacturing company, and it’s trying to break into various US markets.  Ultraawesome gets wind of these attempts after a number of its purchasers ask about their quality compared to New-Fangled, as well as the lower prices being offered by New-Fangled.  Trying to avoid any defamation claim, the CEO of Ultraawesome responds to these questions by just highlighting the long track record of their machines, since they’ve been in the business for decades.  However, the CEO becomes concerned about the threat to Ultraawesome’s bottom line with a new competitor.  The CEO decides to make an offer to New-Fangled to purchase its business and technology, including all patents obtained by New-Fangled.  Since New-Fangled is just starting to enter a lot of the same markets, the purchase wouldn’t increase Ultraawesome’s market share, but it would give Ultraawesome a small market share in rural areas where it has very few sales currently. Following a complaint by another competitor to the FTC contesting the potential purchase, the FTC investigates and decides to prohibit the acquisition of New-Fangled by Ultraawesome.  Ultraawesome contests the decision in Federal District Court.  Should the judge overseeing the case use the rule of reason or per se violation doctrine to decide the case, and why? Should the potential purchase be deemed a violation of antitrust law, and why or why not? (2-3 sentences)