Tax issues
1.Identify at least two main tax issues suggested by each of the scenarios described below:
Wheelie Corporation is a calendar year taxpayer. For the past nine
years its taxable income has been stable, averaging $2 million per
year. Through November of this year, its taxable income was $1.81
million. In April, June and September, Wheelie made a $175,000
installment payment of tax. In December, it recognized a $5 million
gain on the sale of investment land.
Aloha Inc. sells timeshares in Hawaii. Gerry buys timeshare from Aloha Inc,. He agrees to pay $10,000 down and Aloha Inc. will finance a seven year note for the balance of the purchase price at the current market rate of interest. Identify the issues for Aloha Inc.
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