Millard Company purchased $4,413,000 of new business equipment (7-year property) on July 10, 2025. This was Millard’s only asset purchase in 2025. Assume Millard made the maximum §179 election with respect to the equipment. Compute Millard’s total tax depreciation for this 7-year property ignoring bonus depreciation.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%

Washington Corporation began business in 2021 and has never sold a §1231 asset. In 2025, Washington sold the following business assets: Machinery (Amount Realized $36,000 Cost $31,000 A/D $9,000); Building (Amount Realized $68,000 Cost $90,000 A/D $20,000); Computer Equipment (Amount Realized $2,000 Cost $11,000 A/D $5,000). Washington owned each of the assets for several years. Assuming Washington’s marginal tax rate is 21%, what effect do the gains and looses have on Washington Corporation’s end of year tax liability?

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

Nixon Corporation has income from operations of $192,000, a dividend from a 5% owned corporation of $88,000, business expenses of $168,000 and a dividend received deduction of $44,000.  Nixon Corporation makes cash contributions of $35,000 to charitable organizations.  What is Nixon Corporation’s charitable contribution deduction for the current year?

Thomas acquired a 25% interest in Jefferson Partnership by contributing land having an adjusted basis of $16,000 and a fair market value of $50,000.  The land was subject to a $24,000 mortgage, which was assumed by Jefferson Partnership.  No other liabilities existed at the time of the contribution.  What was Thomas’ basis in Jefferson Partnership?

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

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

On December 31, 2025, after receipt of his share of partnership income, Ulysses sold his interest in Grant Partnership for $30,000 cash and relief of all liabilities. On that date, the adjusted basis of Ulysses’ partnership interest was $40,000, consisting of his capital account of $15,000 and his share of the partnership liabilities of $25,000. What is Ulysses’ gain or loss on the sale of his partnership interest?

Martin purchases a 50% interest in Van Buren Partnership for $30,000 cash on the first day of the partnership’s tax year, . The partnership has $40,000 in liabilities when Martin enters the partnership. Partners share the risk of loss from liabilities in the same way they share partnership income and losses. During 2025, the partnership incurs a $120,000 loss and a $20,000 increase in liabilities. How much of the loss can Martin report on his tax return for 2025?