SOLUTION MANUAL For Principles of Taxation for Business and Investment Planning 2020 23rd Edition by Sally Jones, Shelley Rhoades Catanach

## ## # # # #
# # ##
#




$%&'()%*+,-*'-&+.
/
 15
3
9
8367891 !3
934 43"46
013453167891 136 93 791 91799453133994 81 4 918367891 


, 15
3
9
8367891 !3
934 43"46
013453167891 136 93 791 91799453133994 81 4 918367891 


, ## # # #
# # ##
$ %&'#(&)*+,-.#/011+2#123*#435+2,*+,-#10,+.#&,/#(+,&6-0+.#7+8&9.+#-:+)#;<=>?@AB>@=>C=CA@D#/+-+2#32#
(9,0.:#9,&88+(-&76+#7+:&5032E#%&'#(&)*+,-.#/011+2#123*#1++.#32#9.+2#8:&24+.#7+8&9.+#-:+)#CD>?@A=>@B@F=A
-:+#(&)=<A@DA;AGH=IBJBIAKDL=<>M=>@AKDDCAD<AG=<LBI=NAGOIPA;GA;AHDG@;K=AG@;MHAD<A;AC<BL=<?GAFBI=>G=QAR;SA
(&)*+,-.#&6.3#/011+2#123*#1++.#32#9.+2#8:&24+.#7+8&9.+#-:+)#&2+#83*(96.32)E#
#
$ %:0.#(&)*+,-#:&.#8:&2&8-+20.-08.#31#&#-&'T#&#(+,&6-)T#&,/#&#9.+2#1++E#%:+#83*(96.32)#(&)*+,-#0.#,3-#
.(+80108&66)#(9,0-05+#79-#/3+.#&((6)#.+6+8-05+6)#-3#-:3.+#83*(&,0+.#*3.-#60U+6)#2+.(3,.076+#132#-:+#(3669-+/#
83,/0-03,#31#V2++,#W05+2E#X3Y+5+2T#-:+.+#.&*+#83*(&,0+.#*&)#7+#-:+#+,-0-0+.#-:&-#7+,+10-#*3.-#123*#-:+#
+,5023,*+,-&6#86+&,Z9(E#
#
[$ %:0.#(&)*+,-#*32+#863.+6)#2+.+*76+.#&#1++#132#&#435+2,*+,-#.+2508+#-:&,#&#-2&,.&8-03,Z7&.+/#-&'#
7+8&9.+#-:+#-2&,.&8-03,#38892.#7+-Y++,#&#(205&-+#(&2-)#&,/#-:+#\920./08-03,#0-.+61T#2&-:+2#-:&,#7+-Y++,#
(205&-+#(&2-0+.#+,4&40,4#0,#&#*&2U+-#-2&,.&8-03,E#%:+#(&)*+,-#&6.3#+,-0-6+.#-:+#(&)+2#-3#&#.(+80108#7+,+10-#
]-:+#204:-#-3#*&22)#9,/+2#6&Y^E#
#
_$ %3#-:+#+'-+,-#-:&-#-:+#/+860,+#0,#=S@=<BD<AM;B>@=>;>I=A<=COI=GA@P=AL;FO=ADJÀ<QAaDb=FF?GA;H;<@M=>@A
83*(6+'T#:+#7+&2.#-:+#0,80/+,8+#31#-:+#0,82+&.+/#(23(+2-)#-&'E#%3#-:+#+'-+,-#-:&-#-:+#/+860,+#2+/98+.#-:+#
5&69+#31#&/\30,0,4#(23(+2-0+.#32#*&U+.#-:+#,+04:732:33/#6+..#&--2&8-05+T#-:+#3Y,+2.#31#-:+#&/\30,0,4#
(23(+2-0+.#&,/#-:+#,+04:732:33/#2+.0/+,-.#.:&2+#-:+#0,80/+,8+#31#-:+#-&'#0,82+&.+E#
#
c$ a=DHF=AbPDACD>?@ACB<=I@F)#OG=AHOdFBIAGIPDDFGAeGOIPA;GÀ<QA;>CÀ<GQAfP=<>AD<AH=DHF=AbPDACD>?@AP;L=A
8:06/2+,^#0,/02+8-6)#7+,+10-#123*#&#(97608#+/98&-03,#.).-+*#132#-:+#4+,+2&6#(3(96&-03,E#g249&76)T#(97608#
+/98&-03,#83,-2079-+.#-3#&#.U066+/#Y32U1328+#&,/#0*(235+.#-:+#896-92&6#&,/#.380&6#+,5023,*+,-#0,#Y:08:#
h2E#&,/#h2.E#g:+2,#605+E#i&.+/#3,#-:0.#&249*+,-T#h2E#&,/#h2.E#g:+2,#.:396/#,3-#7+#+'+*(-#123*#-:+#638&6#
(23(+2-)#-&'E#
#
j$ %:+#83,.9*+2.#Y:3#(&)#-:+#.&*+#(208+#132#&#.*&66+2#7&2#31#.3&(#31#6+..+2#k9&60-)#7+&2#-:+#
0,80/+,8+#31#-:+#,+Y#423..#2+8+0(-.#-&'E#
l$ W+&6#(23(+2-)#I;>?@Ad=APBCC=>AD<#*35+/T#&,/#0-.#3Y,+2.:0(#]6+4&6#-0-6+^#0.#&#*&--+2#31#(97608#2+832/E#
m,#83,-2&.-T#(+2.3,&6#(23(+2-)#0.#*3706+#&,/#*&)#7+#+&.06)#83,8+&6+/E#h32+35+2T#\920./08-03,.#*&)#
,3-#:&5+#&,#+11+8-05+#*+&,.#-3#/0.835+2#32#-2&8+#3Y,+2.:0(#31#(+2.3,&6#(23(+2-)E#
#
n$ g249&76)T#(205&-+#4361#8392.+.#7+&9-01)#-:+#638&60-)#&,/#&2+#+,5023,*+,-&66)#*32+#/+.02&76+#-:&,#3-:+2#
83**+280&6#&8-050-0+.E#%:+)#&6.3#*&)#2+k902+#*32+#&82+&4+#-:&,#3-:+2#79.0,+..+.#&,/T#-:+2+132+T#Y396/#
7+#&-#&#83*(+-0-05+#/0.&/5&,-&4+#Y0-:39-#&#(2+1+2+,-0&6#2+&6#(23(+2-)#-&'#2&-+E#
#
o$ h&,)#\920./08-03,.#-:&-#6+5)#(23(+2-)#-&'+.#(2350/+#&,#+'+*(-03,#132#(97608#0,.-0-9-03,.T#.98:#&.#.-&-+#
9,05+2.0-0+.#32#(205&-+#8366+4+.E#m1#p,05+2.0-)#q#0.#+,-0-6+/#-3#.98:#&,#+'+*(-03,T#+5+2)#83**+280&6#
7906/0,4#32#2+.0/+,8+#&8k902+/#7)#-:+#p,05+2.0-)#<=COI=GA@P=AFDI;FArO<BGCBI@BD>?GAH<DH=<@)#-&'#7&.+E#




 15
3
9
8367891 !3
934 43"46
013453167891 136 93 791 91799453133994 81 4 918367891 


,  #$%&'()*+,%)(*,-)*'./0()1*02*,*.3&4*2,--05)-*-,26)*07*&02(3.)-*6001(*,21*()-8'&)(*+4,2*(,9)(*
+,%)(:*;02()<3)2+9=>*/)0/9)*&,2*.0-)*-),1'9=*,80'1*/3-&4,('26*+4)*(/)&'7'&*6001*0-*()-8'&)*(3?@)&+*
+0*)%&'()*+,%:*
#A4)*+,%*'2&-),()*.,=*4,8)*-)13&)1*+4)*,66-)6,+)*1).,21*70-*&02(3.)-*6001(*,21>*&02()<3)2+9=>*
.32'&'/,9*-)('1)2+(*,-)*?3='26*7)5)-*6001(:*B*()&021*/0(('?'9'+=*'(*+4,+*.32'&'/,9*-)('1)2+(*,-)*+-,8)9'26*
+0*0+4)-*@3-'(1'&+'02(*5'+4*905)-*+,%*-,+)(*0-*.,C'26*.0-)*/3-&4,()(*+4-0364*.,'9*0-1)-*&,+,906(*0-*02D
9'2):*
*
#E-0.*,*/09'+'&,9*/)-(/)&+'8)>*9'<30-*,21*&'6,-)++)(*(,9)(*.,C)*,2*)%&)99)2+*+,%*?,()*?)&,3()*&02(3./+'02*
07*+4)*+50*/-013&+(*'(*/3-)9=*1'(&-)+'02,-=>*,21*,2=*1)&9'2)*'2*&02(3./+'02*?)&,3()*07*+4)*+,%*'(*(0&',99=*
1)('-,?9):*E-0.*,2*)&020.'&*/)-(/)&+'8)>*+4)()*(,9)(*,-)*,*6001*+,%*?,()*?)&,3()*+4)*1).,21*70-*9'<30-*
,21*&'6,-)++)(*'(*-)9,+'8)9=*/-'&)*'2)9,(+'&:*F2*0+4)-*50-1(>*/)0/9)*540*1-'2C*,21*(.0C)*02*,*-)639,-*?,('(*
?3=*+4)()*/-013&+(*-)6,-19)((*07*,*4),8=*)%&'()*+,%:*
*
G#A4)*7)1)-,9*'2&0.)*4,(*+4)*?-0,1)-*?,():*A4)*7)1)-,9*/,=-099*+,%*'(*'./0()1*02*5,6)(>*(,9,-')(>*,21*0+4)-*
70-.(*07*&0./)2(,+'02*),-2)1*?=*)./90=))(:*A4)*7)1)-,9*'2&0.)*+,%*'(*'./0()1*02*,99*+=/)(*07*
&0./)2(,+'02*,(*5)99*,(*2)+*?3('2)((*/-07'+>*'28)(+.)2+*'2&0.)>*,21*,2=*0+4)-*'2&0.)*'+).*7-0.*
54,+)8)-*(03-&)*1)-'8)1:*
H#B*/-0/)-+=*+,%*'(*,*/)-'01'&*I3(3,99=*,223,9J*+,%*9)8')1*02*+4)*KLMNOPQRS*07*/-0/)-+=*,21*?,()1*02*+4)*
8,93)*07*+4)*/-0/)-+=*02*,*/,-+'&39,-*,(()((.)2+*1,+):*B*+-,2(7)-*+,%*'(*,*+-,2(,&+'02D*?,()1*+,%*9)8')1*02*
+4)*TOUMPVNO*07*/-0/)-+=*7-0.*02)*/,-+=*+0*,20+4)-:*B*+-,2(7)-*+,%*'(*?,()1*02*+4)*8,93)*07*+4)*/-0/)-+=*,+*
1,+)*07*+-,2(7)-:*
*
W#F7*+4)*7)1)-,9*608)-2.)2+*&0391*X/'66=*?,&CY*,*2,+'02,9*(,9)(*+,%*02*)%'(+'26*(+,+)*(,9)(*+,%*&099)&+'02*
(=(+).(>*+4)*7)1)-,9*608)-2.)2+*&0391*,80'1*&-),+'26*,*2)5*7)1)-,9*,6)2&=*70-*&099)&+'26*+4)*+,%:*F2*
&02+-,(+>*+4)*7)1)-,9*608)-2.)2+*50391*4,8)*+0*&-),+)*,*2)5*&099)&+'02*(=(+).*70-*,*2,+'02,9*ZBA:*
[05)8)->*,*2,+'02,9*ZBA*50391*?)*9)((*9'C)9=*+0*&,3()*@3-'(1'&+'02,9*&0279'&+*?)+5))2*+4)*7)1)-,9*
\]^_`ab_acdeafdcg_dhcec_hdi_jekh_dhcec_hdf]alcdf_m_afd]adnophdehdedh]k`j_d]qd̀_^_ak_r*
*
s#A4)*F2+)-2,9*t)8)23)*;01)*'(*7)1)-,9*(+,+3+0-=*9,5>*)2,&+)1*?=*;026-)((*,21*('62)1*?=*+4)*u-)('1)2+:*
A)&42'&,99=>*A-),(3-=*-)639,+'02(*029=*vac_`m`_cdeafd_wmxevadcg_dhceckc_deafde`_alcdxeyhdvadcg_v̀d]yad̀v\gcrd
A43(>*-)639,+'02(*,-)*9)((*,3+40-'+,+'8)*+4,2*+4)*;01)*'+()97:*[05)8)->*?)&,3()*;026-)((*,3+40-'z)1*+4)*
A-),(3-=*+0*5-'+)*-)639,+'02(>*+4)=*e`_dcg_d\]^_`ab_aclhd]qqvjvexdvac_`m`_cecv]ad]qdhceckc]`=*9,5:*
u-,&+'&,99=>*+4)*-)639,+'02(*&,--=*&02('1)-,?9)*,3+40-'+,+'8)*5)'64+:*
*
*
# ,:*A4)*(+,+).)2+*07*7,&+(*'1)2+'7')(*+4-))*+,%/,=)-({*|-:*}0(4*~)22)=>*}~*)-8'&)(>*,21*}~*t),9+=:*
*
#A4)*608)-2.)2+*07*+4)*90&,9'+=*'2*54'&4*|-:*~)22)=*-)('1)(>*+4)*(+,+)*608)-2.)2+*07*Z)-.02+>*,21*
+4)*€::*608)-2.)2+*4,8)*@3-'(1'&+'02*+0*+,%*|-:*~)22)=:*A4)*90&,9*608)-2.)2+(*07*+4)*703-*
&032+')(*'2*54'&4*}~*)-8'&)(*&0213&+(*?3('2)((>*+4)*(+,+)*608)-2.)2+*07*Z)-.02+>*,21*+4)*€::*
608)-2.)2+*4,8)*@3-'(1'&+'02*+0*+,%*}~*)-8'&)(:*A4)*&'+=*07*0(+02>*+4)*(+,+)*608)-2.)2+*07*
|,((,&43()++(>*,21*+4)*€::*608)-2.)2+*4,8)*@3-'(1'&+'02*+0*+,%*}~*t),9+=:*
# ,:**A4)*€2'+)1*+,+)(*4,(*@3-'(1'&+'02*+0*+,%*|-(:*|,=*?)&,3()*(4)*'(*,*/)-.,2)2+*-)('1)2+:*
*
#A4)*€2'+)1*+,+)(*4,(*@3-'(1'&+'02*+0*+,%*|-(:*|,=*029=*02*+4)*€::*(03-&)*-)2+,9*'2&0.)*
6)2)-,+)1*?=*+4)*|,24,++,2*-),9*)(+,+):*

 15
3
9
8367891 !3
934 43"46
013453167891 136 93 791 91799453133994 81 4 918367891