Help for finance an accounting mix

1. Due to the population change, the Goose Creek School District has decided to close one of its high schools. Because it had no further need of the property, the school was listed for sale. It received two bids. One was from the United Methodist Church for $1,700,000; the other was from Planet Motors for $1,600,000. The United Methodist Church would use the property to establish a sectarian middle school. Planet, a well-known car dealership, would revamp the property and operate it as a branch location. If you were a member of the school district board, what factors would you consider in evaluating the two bids?

2. During the current year, Yellow Company had operating income of $380,000 and operating expenses of $300,000. In addition, Yellow had a long-term capital loss of $50,000. Based on this information, how does Alexandria, the sole owner of Yellow Company, report this information on her individual income tax return under the following assumptions?   I. Yellow is a proprietorship, and Alexandria does not withdraw any funds from the company during the year.   II. Yellow is an LLC, and Alexandria does not withdraw any funds from the company during the year.   III. Yellow is an S corporation, and Alexandria does not withdraw any funds from the company during the year.   IV. Yellow is a regular corporation, and Alexandria does not withdraw any funds from the company during the year.

3. (TCOs 4 and 5) Kitty runs a brothel (illegal under state law) and has the following items of income and expense. What is the amount that she must include in taxable income from her operation?  

Income:		$200,000
Expenses:
	Rent	$8,000
	Utilities	$2,000
	Bribes to Police	$10,000
	Medical Expense	$5,000
	Legal Fees	$20,000
	Depreciation	$14,000
	Illegal Kickbacks	$15,000

4. In 2010, Kelly, who earns a salary of $200,000, invests $40,000 for a 20% interest in a partnership not subject to the passive loss rules. Through the use of $800,000 of nonrecourse financing, the partnership acquires assets worth $1 million. Depreciation, interest, and other deductions related to the activity produce a loss of $150,000, of which Kelly's share is $30,000. In 2011, Kelly's share of the loss from the partnership is $15,000. How much of the loss from the partnership can Kelly deduct?

5. Sid bought a new $700,000, seven-year class asset on August 2, 2011. On December 2, 2011, he purchased $160,000 of used five-year class assets. If Congress reenacts additional first-year depreciation for 2011, Sid elects not to take additional first-year depreciation. If Sid elects § 179, what is the maximum write-off for these purchases for 2011?

6. Louis sold his farm during the current taxable year. At the date of the sale, the farm had an adjusted basis of $212,000 and was encumbered by a mortgage of $190,000. The buyer paid him $110,000 in cash, agreed to take the title subject to the $190,000 mortgage, and agreed to pay him $80,000 with interest at 9% one year from the date of sale. How much is Louis' recognized gain on the sale?

7. Trish had the following transactions during 2010: Salary                                                                      $70,000 Interest income on bonds                               Issued by City of Newark                                      $3,000           Issued by Chevron Corporation                               $2,000   $5,000 Alimony received                                                         $4,000 Child support received                                                $12,000 City and state income taxes paid                                   $5,000 Bank loan obtained to pay for vacation                           $8,000 What is Trish's AGI for 2011?