Exam 3: Corporations: Special Situations

Rose, Inc., an S corporation, has taxable income of $14 million in 2015. Assume there are two shareholders, each in the 35% tax bracket. What is the maximum total DPAD tax savings for the S corporation shareholders?

(Multiple Choice)

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Question 61

The penalty tax rate for the AET and PHC is the highest rate applicable to individual taxpayers.

(True/False)

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Question 62

In the case of a sole proprietor, modified AGI is substituted for taxable income in the DPAD formula.

(True/False)

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Question 63

Fewer corporations are subject to the AMT than to the domestic production activities deduction.

(True/False)

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Question 64

The W-2 wages limitation as to the DPAD encourages the use of independent contractors.

(True/False)

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Question 65

The AMT rate for corporations is the same as for individuals.

(True/False)

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Question 66

In working with the W-2 wage limitation on DPAD, a partner can count any guaranteed payments he receives from the partnership.

(True/False)

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Question 67

Passive activity losses of certain closely held corporations and personal service corporations are not tax preferences.

(True/False)

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Question 68

Ford Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million for 2015. The company is not a small corporation. If the regular corporate tax is $209,000, Ford's alternative minimum tax for 2015 is:

(Multiple Choice)

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Question 69

Intangible drilling costs are a tax preference item only for integrated oil companies.

(True/False)

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Question 70

Nickel Corporation, a calendar year corporation formed in 2013, has average gross receipts of $5.7 million, $4.2 million, and $4.8 million in 2013, 2014, and 2015, respectively. In 2015, Nickel is:

(Multiple Choice)

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Question 71

Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2015 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 2015 is:

(Multiple Choice)

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Question 72

AMTI may be defined as regular taxable income after AMT adjustments (other than the NOL and ACE adjustments) and after tax preferences.

(True/False)

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Question 73

Which statement is false?

(Multiple Choice)

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Question 74

Dennis, an advertising executive, pays a contractor to build a lodge on property he owns in Colorado. If Dennis sells the lodge, the proceeds (less the cost of the land) will be DPGR.

(True/False)

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Question 75

Modified AGI means AGI without any DPAD allowance.

(True/False)

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Question 76

Under some circumstances, the sale of prepared food at a taxpayer's retail facility can qualify as DPGR.

(True/False)

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Question 77

Rose Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $700,000 for 2016. The company is not a small corporation. If the regular corporate tax is $85,000, Rose's alternative minimum tax for 2016 is:

(Multiple Choice)

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Question 78

The ACE adjustment can be positive or negative.

(True/False)

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Question 79

Which of the following has no effect in arriving at ACE?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 99

Rose, Inc., an S corporation, has taxable income of $14 million in 2015. Assume there are two shareholders, each in the 35% tax bracket. What is the maximum total DPAD tax savings for the S corporation shareholders?

The penalty tax rate for the AET and PHC is the highest rate applicable to individual taxpayers.

In the case of a sole proprietor, modified AGI is substituted for taxable income in the DPAD formula.

Fewer corporations are subject to the AMT than to the domestic production activities deduction.

The W-2 wages limitation as to the DPAD encourages the use of independent contractors.

The AMT rate for corporations is the same as for individuals.

In working with the W-2 wage limitation on DPAD, a partner can count any guaranteed payments he receives from the partnership.

Passive activity losses of certain closely held corporations and personal service corporations are not tax preferences.

Ford Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million for 2015. The company is not a small corporation. If the regular corporate tax is $209,000, Ford's alternative minimum tax for 2015 is:

Intangible drilling costs are a tax preference item only for integrated oil companies.

Nickel Corporation, a calendar year corporation formed in 2013, has average gross receipts of $5.7 million, $4.2 million, and $4.8 million in 2013, 2014, and 2015, respectively. In 2015, Nickel is:

Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2015 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 2015 is:

AMTI may be defined as regular taxable income after AMT adjustments (other than the NOL and ACE adjustments) and after tax preferences.

Which statement is false?

Dennis, an advertising executive, pays a contractor to build a lodge on property he owns in Colorado. If Dennis sells the lodge, the proceeds (less the cost of the land) will be DPGR.

Modified AGI means AGI without any DPAD allowance.

Under some circumstances, the sale of prepared food at a taxpayer's retail facility can qualify as DPGR.

Rose Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $700,000 for 2016. The company is not a small corporation. If the regular corporate tax is $85,000, Rose's alternative minimum tax for 2016 is:

The ACE adjustment can be positive or negative.

Which of the following has no effect in arriving at ACE?

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 3: Corporations: Special Situations

Rose, Inc., an S corporation, has taxable income of $14 million in 2015. Assume there are two shareholders, each in the 35% tax bracket. What is the maximum total DPAD tax savings for the S corporation shareholders?

The penalty tax rate for the AET and PHC is the highest rate applicable to individual taxpayers.

​ In the case of a sole proprietor, modified AGI is substituted for taxable income in the DPAD formula.

Fewer corporations are subject to the AMT than to the domestic production activities deduction.

The W-2 wages limitation as to the DPAD encourages the use of independent contractors.

The AMT rate for corporations is the same as for individuals.

In working with the W-2 wage limitation on DPAD, a partner can count any guaranteed payments he receives from the partnership.

Passive activity losses of certain closely held corporations and personal service corporations are not tax preferences.

Ford Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $1.28 million for 2015. The company is not a small corporation. If the regular corporate tax is $209,000, Ford's alternative minimum tax for 2015 is:

Intangible drilling costs are a tax preference item only for integrated oil companies.

Nickel Corporation, a calendar year corporation formed in 2013, has average gross receipts of $5.7 million, $4.2 million, and $4.8 million in 2013, 2014, and 2015, respectively. In 2015, Nickel is:

Tanver Corporation, a calendar year corporation, has alternative minimum taxable income of $7 million in 2015 (before adjustment for adjusted current earnings). If Tanver's adjusted current earnings is $16 million, its tentative minimum tax for 2015 is:

AMTI may be defined as regular taxable income after AMT adjustments (other than the NOL and ACE adjustments) and after tax preferences.

Which statement is false?

Dennis, an advertising executive, pays a contractor to build a lodge on property he owns in Colorado. If Dennis sells the lodge, the proceeds (less the cost of the land) will be DPGR.

Modified AGI means AGI without any DPAD allowance.

Under some circumstances, the sale of prepared food at a taxpayer's retail facility can qualify as DPGR.

​ Rose Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $700,000 for 2016. The company is not a small corporation. If the regular corporate tax is $85,000, Rose's alternative minimum tax for 2016 is:

The ACE adjustment can be positive or negative.

Which of the following has no effect in arriving at ACE?

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, Operation, and Basis

Partnerships: Distributions, Transfer of Interests, and Terminations

S Corporations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

In the case of a sole proprietor, modified AGI is substituted for taxable income in the DPAD formula.

Rose Corporation, a calendar year corporation, has alternative minimum taxable income (before any exemption) of $700,000 for 2016. The company is not a small corporation. If the regular corporate tax is $85,000, Rose's alternative minimum tax for 2016 is: