Question 1

Identify which of the following statements is true.

Accepted Answer

A)  The terms "regular corporation" and "C corporation" are synonymous. 
B)  A newly formed corporation must select its basic accounting method. 
C)  A corporation is a separate taxpaying entity that must file a tax return annually. 
D)  All of the above are true. 
A)  The terms "regular corporation" and "C corporation" are synonymous. 
B)  A newly formed corporation must select its basic accounting method. 
C)  A corporation is a separate taxpaying entity that must file a tax return annually. 
D)  All of the above are true.

Question 2

Identify which of the following is false.

Accepted Answer

A)  Corporations that sell real property at a gain must report an additional 20% of the entire gain as ordinary income. 
B)  Section 291 reduces the amount of net Sec. 1231 gains that can be offset by corporate capital losses. 
C)  Section 291 recapture applies to Sec. 1250 property. 
D)  Corporations selling real property that previously had been depreciated using an accelerated method are subject to Sec. 291. 
A)  Corporations that sell real property at a gain must report an additional 20% of the entire gain as ordinary income. 
B)  Section 291 reduces the amount of net Sec. 1231 gains that can be offset by corporate capital losses. 
C)  Section 291 recapture applies to Sec. 1250 property. 
D)  Corporations selling real property that previously had been depreciated using an accelerated method are subject to Sec. 291.

Question 3

Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is

Accepted Answer

A)  $60,000. 
B)  $20,000. 
C)  a $20,000 loss. 
D)  a $40,000 loss. 
A)  $60,000. 
B)  $20,000. 
C)  a $20,000 loss. 
D)  a $40,000 loss.

Question 4

Discuss the estimated tax filing requirements for a C corporation.

Accepted Answer

Every corporation that expects to owe mo

Question 5

Corporations may deduct the adjusted basis of inventory plus one- half of the excess of the property's FMV over its adjusted basis if the inventory is used for the care of the ill, needy, or infants.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following items will not create a deferred tax liability?

Accepted Answer

A)  Operating loss or tax credit carryforwards exist. 
B)  Expenses or losses are deductible earlier for tax purposes than for book purposes. 
C)  Revenues or gains are recognized earlier for book purposes than for tax purposes. 
D)  Tax basis of an asset is less than its book basis. 
A)  Operating loss or tax credit carryforwards exist. 
B)  Expenses or losses are deductible earlier for tax purposes than for book purposes. 
C)  Revenues or gains are recognized earlier for book purposes than for tax purposes. 
D)  Tax basis of an asset is less than its book basis.

Question 7

Two days before the ex- dividend date, Drexel Corporation buys 100 shares of Zebra Corporation stock (less than 1%) for $200,000. Drexel Corporation receives $10,000 of dividends from Zebra Corporation. Two weeks after the ex- dividend date, Drexel Corporation sells the Zebra Corporation stock for $190,000. Which of the following statements is correct?

Accepted Answer

A)  Drexel Corporation cannot recognize a capital loss. 
B)  Drexel Corporation will be allowed a 50% dividends- received deduction when reporting the Zebra Corporation dividend. 
C)  Drexel Corporation cannot take a dividends- received deduction on the Zebra Corporation dividend. 
D)  Drexel Corporation will receive no dividends- received deduction because the stock was purchased ex- dividend. 
A)  Drexel Corporation cannot recognize a capital loss. 
B)  Drexel Corporation will be allowed a 50% dividends- received deduction when reporting the Zebra Corporation dividend. 
C)  Drexel Corporation cannot take a dividends- received deduction on the Zebra Corporation dividend. 
D)  Drexel Corporation will receive no dividends- received deduction because the stock was purchased ex- dividend.

Question 8

Corporate estimated tax payments are due April 15, June 15, September 15, and January 15.

Accepted Answer

A) True 
 B)False

Question 9

Garth Corporation donates inventory having an adjusted basis of $40,000 and an FMV of $150,000 to a qualified public charity. The inventory will be used by the charity to care for the ill. The maximum charitable contribution deduction before consideration of the 10% limitation is

Accepted Answer

A)  $95,000. 
B)  $40,000. 
C)  $80,000. 
D)  $55,000. 
A)  $95,000. 
B)  $40,000. 
C)  $80,000. 
D)  $55,000.

Question 10

What are the four principles underlying ASC 740?

Accepted Answer

1) Recognize a current- year tax liabili

Question 11

Bermuda Corporation reports the following results in 2017 and 2018: $\begin{array}{|l|r|r|} 
\hline & \mathbf{2 0 1 7} &{\mathbf{2 0 1 8}} \
\hline \text { Adjusted taxable income } & \$ 400,000 & \$ 600,000 \
\hline \text { Charitable contributions } & 70,000 & 50,000 \
\hline
\end{array}$ What is Bermuda's contribution deduction in 2017 and 2018? What is the disposition of any remaining amount?

Accepted Answer

Bermuda's 2017 contribution deduction is

Question 12

Identify which of the following statements is true.

Accepted Answer

A)  In computing an NOL for the current year, a deduction is allowed for NOLs from previous years. 
B)  A corporate NOL can be carried back two years and forward 15 years. 
C)  An NOL incurred before 2018 carries forward 20 years and is not subject to the 80% of taxable income limitation. 
D)  All of the above are false. 
A)  In computing an NOL for the current year, a deduction is allowed for NOLs from previous years. 
B)  A corporate NOL can be carried back two years and forward 15 years. 
C)  An NOL incurred before 2018 carries forward 20 years and is not subject to the 80% of taxable income limitation. 
D)  All of the above are false.

Question 13

A new corporation may generally select one of the following accounting methods with the exception of

Accepted Answer

A)  retail method. 
B)  cash method. 
C)  hybrid method. 
D)  accrual method. 
A)  retail method. 
B)  cash method. 
C)  hybrid method. 
D)  accrual method.

Question 14

For corporations, what happens to excess charitable contributions?

Accepted Answer

Corporations may not deduct charitable c

Identify which of the following statements is true.

Identify which of the following is false.

Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is

Discuss the estimated tax filing requirements for a C corporation.

Corporations may deduct the adjusted basis of inventory plus one- half of the excess of the property's FMV over its adjusted basis if the inventory is used for the care of the ill, needy, or infants.

Which of the following items will not create a deferred tax liability?

Corporate estimated tax payments are due April 15, June 15, September 15, and January 15.

Garth Corporation donates inventory having an adjusted basis of $40,000 and an FMV of $150,000 to a qualified public charity. The inventory will be used by the charity to care for the ill. The maximum charitable contribution deduction before consideration of the 10% limitation is

What are the four principles underlying ASC 740?

Bermuda Corporation reports the following results in 2017 and 2018: Adjusted taxable income \ 400,000 \ 600,000 Charitable contributions 70,000 50,000 What is Bermuda's contribution deduction in 2017 and 2018? What is the disposition of any remaining amount?

Identify which of the following statements is true.

A new corporation may generally select one of the following accounting methods with the exception of

For corporations, what happens to excess charitable contributions?

Tax Research

Corporate Formations and Capital Structure

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

U.S. Taxation of Foreign-Related Transactions

Filters

Exam 3: The Corporate Income Tax

Identify which of the following statements is true.

Identify which of the following is false.

Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. Trail's taxable income is

Discuss the estimated tax filing requirements for a C corporation.

Corporations may deduct the adjusted basis of inventory plus one- half of the excess of the property's FMV over its adjusted basis if the inventory is used for the care of the ill, needy, or infants.

Which of the following items will not create a deferred tax liability?

Corporate estimated tax payments are due April 15, June 15, September 15, and January 15.

Garth Corporation donates inventory having an adjusted basis of $40,000 and an FMV of $150,000 to a qualified public charity. The inventory will be used by the charity to care for the ill. The maximum charitable contribution deduction before consideration of the 10% limitation is

What are the four principles underlying ASC 740?

Bermuda Corporation reports the following results in 2017 and 2018: Adjusted taxable income \ 400,000 \ 600,000 Charitable contributions 70,000 50,000 What is Bermuda's contribution deduction in 2017 and 2018? What is the disposition of any remaining amount?

Identify which of the following statements is true.

A new corporation may generally select one of the following accounting methods with the exception of

For corporations, what happens to excess charitable contributions?

Tax Research

Corporate Formations and Capital Structure

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

U.S. Taxation of Foreign-Related Transactions

Filters