Witte Corporation reported the following results for the current year: $\begin{array}{|l|r|} \hline\text { Taxable income before the dividends-received deduction }\\ \text { and before the charitable contributions deduction } & \$ 160,000 \\ \hline \text { Dividends-received deduction } & 10,000 \\ \hline \text { Charitable contributions } & 30,000\\\hline \end{array}$ What is the amount of the charitable contribution carryover to next year?

A) $0 B) $14,000 C) $16,000 D) $30,000 A) $0 B) $14,000 C) $16,000 D) $30,000

Greg Corporation,an accrual method taxpayer,had accumulated earnings and profits of $300,000 as of December 31 last year.For its current tax year,Greg's books and records reflect the following: \[\begin{array} {| l | r| } \hline \text { Taxable income per return } & \$ 160,000 \\ \hline \text { Tax-exempt interest received } & 2,500 \\ \hline \text { Federal income taxes } & 33,600 \\ \hline \text { Excess capital losses not deductible in current year } & 4,000 \\ \hline \text { Contributions in excess of limitation } & 2,000 \\ \hline \end{array}\] Based on the above,what is the amount of Greg Corporation's current earnings and profits for this year?

A) $120,400 B) $124,900 C) $122,900 D) $128,900 A) $120,400 B) $124,900 C) $122,900 D) $128,900

Exam 32: Corporations

Dozen Corporation is owned equally by twelve unrelated individuals.Its taxable income this year is $100,000 and its regular federal income tax liability is $21,000.The company claims a $20,000 dividends-received deduction and pays $25,000 dividends to its shareholders.The corporation had accumulated earnings and profits of $900,000 at the end of the preceding year.The company has not documented any business needs for the accumulated profits.The accumulated earnings tax is

(Multiple Choice)

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Question 41

Unused charitable contributions of a corporation are carried forward ten years.

(True/False)

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Question 42

Evan owns 45% of Yolo Corporation and 40% of Xeqz Corporation.Farra owns 37% of Yolo Corporation and 48% of Xeqz Corporation.Gao owns 5% of Yolo Corporation but does not own any stock in Xeqz.Each corporation has only one class of stock.Yolo and Xeqz Corporations form a(an)

(Multiple Choice)

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Question 43

A corporation incurs a net operating loss in 2019.The NOL can be carried back two years and forward for 20 years.

(True/False)

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Question 44

A publicly held corporation is denied a deduction for compensation paid to its chief executive officer,its chief financial officer and its three highest compensated officers if the compensation amount for any individual exceeds $1,000,000 per year.

(True/False)

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Question 45

A corporation is owned 70% by Jones and 30% by Smith.Jones owns 70 shares with a cost of $100 each.Smith owns 30 shares with a cost of $100 per share.Smith and Jones are not related.The company redeems Smith's 30 shares at a redemption price of $400 per share.No stock is redeemed from Jones.This is not a redemption to pay death taxes,and it is not a partial liquidation.Smith will recognize

(Multiple Choice)

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Question 46

Witte Corporation reported the following results for the current year: Taxable income before the dividends-received deduction and before the charitable contributions deduction \ 160,000 Dividends-received deduction 10,000 Charitable contributions 30,000 What is the amount of the charitable contribution carryover to next year?

(Multiple Choice)

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Question 47

The accumulated earnings tax is imposed on all publicly held corporations.

(True/False)

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Question 48

A calendar-year corporation has a $15,000 current E&P deficit and a $40,000 positive accumulated E&P balance.The shareholders of the corporation have a total basis in outstanding shares of $30,000.A $75,000 distribution is made to the shareholders on the last day of the year.The tax results to the shareholders will be

(Multiple Choice)

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Question 49

Corkie Corporation distributes $80,000 cash along with land having a $60,000 adjusted basis and a $40,000 FMV to its shareholder Josh.What are the tax consequences to Corkie Corporation?

(Multiple Choice)

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Question 50

A corporation has a minimum tax credit carryover remaining from 2017.It will be able to apply the MTC to offset up to 50% of its 2019 regular income tax liability.

(True/False)

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(83)

Question 51

Greg Corporation,an accrual method taxpayer,had accumulated earnings and profits of $300,000 as of December 31 last year.For its current tax year,Greg's books and records reflect the following: Taxable income per return \ 160,000 Tax-exempt interest received 2,500 Federal income taxes 33,600 Excess capital losses not deductible in current year 4,000 Contributions in excess of limitation 2,000 Based on the above,what is the amount of Greg Corporation's current earnings and profits for this year?

(Multiple Choice)

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Question 52

C corporations will calculate income tax

(Multiple Choice)

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Question 53

Except for certain lines of business such as farming,C corporations can choose between the cash method and accrual method of accounting.

(True/False)

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Question 54

Depreciation recapture does not apply to a transfer coming under Sec.351 unless the transferor recognizes gain on depreciable property that is transferred.

(True/False)

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Question 55

A corporation has taxable income from operations of $1 million.In addition,it received $100,000 of dividend income from very minor holdings in publicly held corporations.The corporation will be have a tax liability of

(Multiple Choice)

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Question 56

A controlled group of corporations must apportion tax benefits (e.g.,Sec.179 expense limitation)among the group members as if only one corporation existed.

(True/False)

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Question 57

Which of the statements is inaccurate regarding requirements for nonrecognition of gain or loss upon the transfer of assets to a corporation in exchange for stock?

(Multiple Choice)

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Question 58

In a Sec.351 transfer,the corporation takes the shareholder's adjusted basis in the contributed property,regardless of whether the property's FMV is greater than or less than its adjusted basis at the date of contribution.

(True/False)

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Question 59

With respect to charitable contributions by corporations,all of the following rules apply with the exception of

(Multiple Choice)

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Question 60

Showing 41 - 60 of 122

Exam 32: Corporations

Unused charitable contributions of a corporation are carried forward ten years.

Evan owns 45% of Yolo Corporation and 40% of Xeqz Corporation.Farra owns 37% of Yolo Corporation and 48% of Xeqz Corporation.Gao owns 5% of Yolo Corporation but does not own any stock in Xeqz.Each corporation has only one class of stock.Yolo and Xeqz Corporations form a(an)

A corporation incurs a net operating loss in 2019.The NOL can be carried back two years and forward for 20 years.

A publicly held corporation is denied a deduction for compensation paid to its chief executive officer,its chief financial officer and its three highest compensated officers if the compensation amount for any individual exceeds $1,000,000 per year.

The accumulated earnings tax is imposed on all publicly held corporations.

Corkie Corporation distributes $80,000 cash along with land having a $60,000 adjusted basis and a $40,000 FMV to its shareholder Josh.What are the tax consequences to Corkie Corporation?

A corporation has a minimum tax credit carryover remaining from 2017.It will be able to apply the MTC to offset up to 50% of its 2019 regular income tax liability.

C corporations will calculate income tax

Except for certain lines of business such as farming,C corporations can choose between the cash method and accrual method of accounting.

Depreciation recapture does not apply to a transfer coming under Sec.351 unless the transferor recognizes gain on depreciable property that is transferred.

A corporation has taxable income from operations of $1 million.In addition,it received $100,000 of dividend income from very minor holdings in publicly held corporations.The corporation will be have a tax liability of

A controlled group of corporations must apportion tax benefits (e.g.,Sec.179 expense limitation)among the group members as if only one corporation existed.

Which of the statements is inaccurate regarding requirements for nonrecognition of gain or loss upon the transfer of assets to a corporation in exchange for stock?

In a Sec.351 transfer,the corporation takes the shareholder's adjusted basis in the contributed property,regardless of whether the property's FMV is greater than or less than its adjusted basis at the date of contribution.

With respect to charitable contributions by corporations,all of the following rules apply with the exception of

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