ACC 307 help A Guide to career/Snaptutorial ACC 307 help A Guide to career/Snaptutorial | Page 11

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1. In January, Lance sold stock with a cost basis of $26,000 to his
brother, James, for $24,000, the fair market value of the stock on the
date of sale. Five months later, James sold the same stock through his
broker for $27,000. What is the tax effect of these transactions?
2. Tommy, an automobile mechanic employed by an auto dealership,
is considering opening a fast food franchise. If Tommy decides not to
acquire the fast food franchise, any investigation expenses are
3. Payments by a cash basis taxpayer of capital expenditures
4. Which of the following is not deductible?
5. Velma and Bud divorced. Velma’s attorney fee of $5,000 is
allocated as follows:
6. Five years ago, Tom loaned his son John $20,000 to start a
business. A note was executed with an interest rate of 8%, which is
the Federal rate. The note required monthly payments of the interest