Question 1

Identify which of the following statements is true.

Accepted Answer

A)  When a corporation donates appreciated capital gain property to a charity, the amount of the contribution deduction generally equals the property's FMV. 
B)  When a corporation contributes appreciated property to a charity, the charitable contribution deduction is the property's FMV or adjusted basis, depending on the election made by the taxpayer. 
C)  When a corporation donates appreciated capital gain property to a private nonoperating foundation, the corporation's contribution is limited to the property's FMV minus the ordinary gain that would have resulted from the property's sale. 
D)  All of the above are false. 
A)  When a corporation donates appreciated capital gain property to a charity, the amount of the contribution deduction generally equals the property's FMV. 
B)  When a corporation contributes appreciated property to a charity, the charitable contribution deduction is the property's FMV or adjusted basis, depending on the election made by the taxpayer. 
C)  When a corporation donates appreciated capital gain property to a private nonoperating foundation, the corporation's contribution is limited to the property's FMV minus the ordinary gain that would have resulted from the property's sale. 
D)  All of the above are false.

Question 2

Westwind Corporation reports the following results for the current year:   What are Westwind's taxable income and regular tax liability before credits for the current year?

Accepted Answer

The net capital gain

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

How does the use of an NOL differ for individual and corporate taxpayers?

Accepted Answer

An individual must make adjust

Question 5

Bermuda Corporation reports the following results in 2017 and 2018:   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 6

Identify which of the following statements is true.

Accepted Answer

A)  At the election of a corporation, a net capital loss carryback can be forgone and carried forward only. 
B)  Corporate capital loss carrybacks can offset corporate ordinary income earned in previous years. 
C)  A corporate capital loss can be carried back three years, and then can be carried forward five years. 
D)  All of the above are false. 
A)  At the election of a corporation, a net capital loss carryback can be forgone and carried forward only. 
B)  Corporate capital loss carrybacks can offset corporate ordinary income earned in previous years. 
C)  A corporate capital loss can be carried back three years, and then can be carried forward five years. 
D)  All of the above are false.

Question 7

Little Corporation uses the accrual method of accounting. Little's sole shareholder, Renee, uses the cash method of accounting. Both taxpayers use the calendar year as their tax year. The corporation accrues a $25,000 interest payment to Renee on December 25, 2011 and makes the payment on March 10, 2012. What are the tax consequences of the transactions to both taxpayers in 2011 and 2012?

Accepted Answer

Little Corporation cannot dedu

Question 8

Which of the following items is a permanent difference between taxable and financial accounting income?

Accepted Answer

A)  net capital loss 
B)  depreciation 
C)  dividends- received deduction 
D)  bad debts 
A)  net capital loss 
B)  depreciation 
C)  dividends- received deduction 
D)  bad debts

Question 9

On December 10, 2018, Dell Corporation (a calendar- year taxpayer) accrues an obligation for a $100,000 bonus to Muriel, a sales representative who had had an outstanding year. Muriel owns no Dell Corporation stock. The bonus is paid on May 5, 2019. What is Dell's deduction for 2018? What is Dell's deduction for 2019?

Accepted Answer

Dell is allowed $0 deduction f

Question 10

Identify which of the following statements is true.

Accepted Answer

A)  The Twilight Corporation purchases inventory for $5,000. Its FMV on the date it is donated to the Blue- Gray Hospital for the care of the needy is $13,000. The maximum charitable contribution deduction available for the donation is $9,000. 
B)  Corporations' charitable deductions are limited to 20% of their adjusted taxable income. 
C)  "Ordinary income property" with regard to the charitable contribution deduction does not include property whose sale would have produced a short- term capital gain. 
D)  All of the above are false. 
A)  The Twilight Corporation purchases inventory for $5,000. Its FMV on the date it is donated to the Blue- Gray Hospital for the care of the needy is $13,000. The maximum charitable contribution deduction available for the donation is $9,000. 
B)  Corporations' charitable deductions are limited to 20% of their adjusted taxable income. 
C)  "Ordinary income property" with regard to the charitable contribution deduction does not include property whose sale would have produced a short- term capital gain. 
D)  All of the above are false.

Question 11

Corporations are permitted to deduct $3,000 in net capital losses annually.

Accepted Answer

A) True 
 B)False

Question 12

Blueboy Inc. contributes inventory to a qualified charity for use in feeding the needy. The inventory has a $70,000 FMV and a $30,000 adjusted basis. Blueboy Inc. can take a charitable contribution deduction of

Accepted Answer

A)  $60,000. 
B)  $20,000. 
C)  $30,000. 
D)  $50,000. 
A)  $60,000. 
B)  $20,000. 
C)  $30,000. 
D)  $50,000.

Question 13

Which of the following items indicate that a company does not need a valuation allowance?

Accepted Answer

A)  excess of appreciated asset value over tax basis sufficient to realize the deferred tax asset 
B)  existing sales contracts that will produce sufficient income to realize the deferred tax asset 
C)  a strong history of earnings without considering the deferred tax asset 
D)  All of the above are correct. 
A)  excess of appreciated asset value over tax basis sufficient to realize the deferred tax asset 
B)  existing sales contracts that will produce sufficient income to realize the deferred tax asset 
C)  a strong history of earnings without considering the deferred tax asset 
D)  All of the above are correct.

Question 14

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.

Identify which of the following statements is true.

Westwind Corporation reports the following results for the current year: What are Westwind's taxable income and regular tax liability before credits for the current year?

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

How does the use of an NOL differ for individual and corporate taxpayers?

Bermuda Corporation reports the following results in 2017 and 2018: 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.

Which of the following items is a permanent difference between taxable and financial accounting income?

Identify which of the following statements is true.

Corporations are permitted to deduct $3,000 in net capital losses annually.

Blueboy Inc. contributes inventory to a qualified charity for use in feeding the needy. The inventory has a $70,000 FMV and a $30,000 adjusted basis. Blueboy Inc. can take a charitable contribution deduction of

Which of the following items indicate that a company does not need a valuation allowance?

Identify which of the following is false.

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

Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

Filters

Exam 3: The Corporate Income Tax

Identify which of the following statements is true.

Westwind Corporation reports the following results for the current year: What are Westwind's taxable income and regular tax liability before credits for the current year?

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

How does the use of an NOL differ for individual and corporate taxpayers?

Bermuda Corporation reports the following results in 2017 and 2018: 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.

Which of the following items is a permanent difference between taxable and financial accounting income?

Identify which of the following statements is true.

Corporations are permitted to deduct $3,000 in net capital losses annually.

Blueboy Inc. contributes inventory to a qualified charity for use in feeding the needy. The inventory has a $70,000 FMV and a $30,000 adjusted basis. Blueboy Inc. can take a charitable contribution deduction of

Which of the following items indicate that a company does not need a valuation allowance?

Identify which of the following is false.

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

Tax Deductions and Travel Expenses for Employees and Self-Employed Individuals

Filters