Question 1

Corporations and partnerships can be S corporation shareholders.

Accepted Answer

A) True 
 B)False

Question 2

Caravan Corporation has always been an S corporation. Caravan Corporation is 100% owned by Alan Merten. On January 1, Alan has an adjusted basis of $50,000 in his Caravan stock. During the year, Caravan reports ordinary income of $60,000, a long- term capital gain of $10,000, and a charitable contribution of $5,000. Alan receives a $20,000 cash distribution from Caravan on December 1. What income does Alan recognize from the distribution, and what is his basis in the Caravan stock at year- end?

Accepted Answer

Basis = $50,000 + $60,000 + $1

Question 3

An S corporation is not treated as a corporate taxpayer with respect to which one of the following fringe benefits?

Accepted Answer

A)  group term life insurance premiums 
B)  nonqualified deferred compensation 
C)  qualified retirement plans 
D)  stock options 
A)  group term life insurance premiums 
B)  nonqualified deferred compensation 
C)  qualified retirement plans 
D)  stock options

Corporations and partnerships can be S corporation shareholders.

An S corporation is not treated as a corporate taxpayer with respect to which one of the following fringe benefits?

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

U.S. Taxation of Foreign-Related Transactions

Filters

Exam 11: S Corporations

Corporations and partnerships can be S corporation shareholders.

An S corporation is not treated as a corporate taxpayer with respect to which one of the following fringe benefits?

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

U.S. Taxation of Foreign-Related Transactions

Filters