Received K-1 indicating her share of the clothing boutique’ s ordinary business income( loss) – Line 1 is $ 23,580. No guaranteed payments were made or
dividends were received by the partnership.
Acquired 100 shares of Ace Corporation common stock for $ 30 a share on January 12, 2014. She sold the stock on December 19 for $ 55 a share.
Paid $ 1,300 for prescription medicines and $ 1,875 in physician and hospital bills. Medical insurance premiums were paid by her employer.
Paid real property taxes of $ 1,675 on her personal residence and interest on her home mortgage was $ 4,285, and interest paid to credit card companies
totaled $ 360.
Contributed $ 25 each week to her church and $ 15 each week to United Way.
Paid $ 1,500 in estimated federal income taxes throughout the year.
Artifact Three: Tax Memo II Corporation Issue Clifford Company has encountered the following issue:
The company would like to make a property distribution( dividend) of the three machines that it uses in its business. It no longer needs two of these machines.
All three machines have a fair market value of $ 20,000 each. The basis of each machine is as follows: Machine A, $ 27,000; Machine B, $ 20,000; and Machine C,