Question 1

The dividends-received deduction is equal to 65% of any dividends-received by a corporate taxpayer.

Accepted Answer

A) True 
 B)False

Question 2

A corporation that is unable to meet its original filing deadline may obtain an automatic twelve-month extension of the time to file its federal income tax return.

Accepted Answer

A) True 
 B)False

Question 3

For distributions prior to 2018, dividends-received deductions generally are not allowed for dividends from foreign corporations.

Accepted Answer

A) True 
 B)False

Question 4

The federal tax law considers the member corporations of an affiliated group to be a single entity for federal tax purposes.

Accepted Answer

A) True 
 B)False

Question 5

A nonprofit corporation may incur a federal income tax if it has unrelated business income.

Accepted Answer

A) True 
 B)False

Question 6

What is the extended due date of the federal income tax return of a corporation with a tax year ended June 30, 2020?

Accepted Answer

A)  October 15, 2020 
B)  May 15, 2021 
C)  April 15, 2021 
D)  March 15, 2021 
A)  October 15, 2020 
B)  May 15, 2021 
C)  April 15, 2021 
D)  March 15, 2021

Question 7

This year, Sonoma Corporation received the following dividends:
 $\begin{array}{llr}
  \text {Alpha, Inc. (a taxable Florida corporation in which Sonoma   } &\$30,000\
 \text {   owns a 58 stock interest)} &\
 \text { Beta, Inc. (a taxable Mexican corporation in which sonoma } &20,000\
 \text {owns a 25\% stock interest)  } &\
 \text {Gamma, Inc. (a taxable Texas corporation in which Sonoma  } &50,000\
 \text { owns a $ 50 \% $ stock interest) } &\
\end{array}$

Before considering the above dividends, Sonoma has taxable income of $550,000. Calculate Sonoma's allowable dividends-received deduction and taxable income.

Accepted Answer

Dividends-received deduction:

Question 8

The corporate characteristic of limited liability is generally more important to the shareholders than the characteristic of centralized management.

Accepted Answer

A) True 
 B)False

Question 9

The burden of corporate taxation is often borne by corporate shareholders, customers, employees, and suppliers.

Accepted Answer

A) True 
 B)False

Question 10

Forward Inc.'s 2021 book income of $739,000 includes a net long-term capital loss of $42,000 and charitable contribution of $170,000. Taxable income shown on the Schedule M-1 would be:

Accepted Answer

A)  $855,900 
B)  $951,000 
C)  $781,000 
D)  $909,000 
A)  $855,900 
B)  $951,000 
C)  $781,000 
D)  $909,000

Question 11

Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends from Innsbrook. Westside's taxable income is:

Accepted Answer

A)  $60,000 
B)  $70,000 
C)  $50,000 
D)  $40,000 
A)  $60,000 
B)  $70,000 
C)  $50,000 
D)  $40,000

Question 12

Harmon, Inc. was incorporated and began business on January 1, 2020. Its tax liability for 2020 was $36,000. Its tax liability for 2021 was $50,000. Which of the following is a correct statement concerning the payment of estimated taxes for 2021?

Accepted Answer

A)  Harmon must pay $12,500 on the 15th day of April, June, September, and December. 
B)  Harmon must pay $9,000 on the 15th day of April, June, September and December. The $14,000 balance is payable by April 15, 2022. 
C)  Harmon may pay the $50,000 tax no later than April 15, 2022. 
D)  None of these statements are correct. 
A)  Harmon must pay $12,500 on the 15th day of April, June, September, and December. 
B)  Harmon must pay $9,000 on the 15th day of April, June, September and December. The $14,000 balance is payable by April 15, 2022. 
C)  Harmon may pay the $50,000 tax no later than April 15, 2022. 
D)  None of these statements are correct.

Question 13

Corporations report their taxable income and calculate the federal income tax on Form 1040.

Accepted Answer

A) True 
 B)False

Question 14

Airfreight Corporation has book income of $370,000. Book income includes a $25,000 gain realized on a like-kind nontaxable exchange of realty. Based only on these items, compute Airfreight's taxable income.

Accepted Answer

A)  $370,000 
B)  $395,000 
C)  $345,000 
D)  $420,000 
A)  $370,000 
B)  $395,000 
C)  $345,000 
D)  $420,000

Question 15

Forward Inc.'s book income of $739,000 includes a net long-term capital loss of $42,000 and charitable contribution of $170,000. Taxable income shown on the Schedule M-1 would be:

Accepted Answer

A)  $855,900 
B)  $951,000 
C)  $781,000 
D)  $909,000 
A)  $855,900 
B)  $951,000 
C)  $781,000 
D)  $909,000

Question 16

In determining the incidence of the corporate income tax:

Accepted Answer

A)  Corporations may pass the tax burden onto consumers in the form of higher prices 
B)  Corporate shareholders may bear the burden of the corporate tax in the form of lower return on investment 
C)  Corporate employees may bear the burden of the corporate tax in the form of lower compensation 
D)  All of these parties may bear the indirect burden of the corporate income tax 
A)  Corporations may pass the tax burden onto consumers in the form of higher prices 
B)  Corporate shareholders may bear the burden of the corporate tax in the form of lower return on investment 
C)  Corporate employees may bear the burden of the corporate tax in the form of lower compensation 
D)  All of these parties may bear the indirect burden of the corporate income tax

Question 17

Slipper Corporation has book income of $500,000. Book income includes a $50,000 gain on the sale of equipment. The equipment originally cost $110,000 and was sold for $75,000. Accumulated book depreciation was $85,000; accumulated MACRS depreciation was $90,000. Based only on these items, compute Slipper's taxable income.

Accepted Answer

A)  $505,000 
B)  $495,000 
C)  $555,000 
D)  $445,000 
A)  $505,000 
B)  $495,000 
C)  $555,000 
D)  $445,000

Question 18

Weston Corporation has accumulated minimum tax credits of $134,000 from tax years prior to 2018. If 2018 regular tax before credits is $47,000, Jackson qualifies for general business credits of $14,000, and it does NOT make the quickie refund election provided by the CARES Act, its allowable minimum tax credit for 2018 is:

Accepted Answer

A)  $134,000 
B)  $47,000 
C)  $83,500 
D)  $100,000 
A)  $134,000 
B)  $47,000 
C)  $83,500 
D)  $100,000

Question 19

If a corporation has accumulated minimum tax credits from tax years prior to 2018, 100 percent of such credits are refundable on either their 2018 or 2019 tax return.

Accepted Answer

A) True 
 B)False

Question 20

The double taxation of corporate earnings is one of the dominant characteristics of the federal income tax system.

Accepted Answer

A) True 
 B)False

The dividends-received deduction is equal to 65% of any dividends-received by a corporate taxpayer.

A corporation that is unable to meet its original filing deadline may obtain an automatic twelve-month extension of the time to file its federal income tax return.

For distributions prior to 2018, dividends-received deductions generally are not allowed for dividends from foreign corporations.

The federal tax law considers the member corporations of an affiliated group to be a single entity for federal tax purposes.

A nonprofit corporation may incur a federal income tax if it has unrelated business income.

What is the extended due date of the federal income tax return of a corporation with a tax year ended June 30, 2020?

The corporate characteristic of limited liability is generally more important to the shareholders than the characteristic of centralized management.

The burden of corporate taxation is often borne by corporate shareholders, customers, employees, and suppliers.

Forward Inc.'s 2021 book income of $739,000 includes a net long-term capital loss of $42,000 and charitable contribution of $170,000. Taxable income shown on the Schedule M-1 would be:

Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends from Innsbrook. Westside's taxable income is:

Harmon, Inc. was incorporated and began business on January 1, 2020. Its tax liability for 2020 was $36,000. Its tax liability for 2021 was $50,000. Which of the following is a correct statement concerning the payment of estimated taxes for 2021?

Corporations report their taxable income and calculate the federal income tax on Form 1040.

Airfreight Corporation has book income of $370,000. Book income includes a $25,000 gain realized on a like-kind nontaxable exchange of realty. Based only on these items, compute Airfreight's taxable income.

Forward Inc.'s book income of $739,000 includes a net long-term capital loss of $42,000 and charitable contribution of $170,000. Taxable income shown on the Schedule M-1 would be:

In determining the incidence of the corporate income tax:

If a corporation has accumulated minimum tax credits from tax years prior to 2018, 100 percent of such credits are refundable on either their 2018 or 2019 tax return.

The double taxation of corporate earnings is one of the dominant characteristics of the federal income tax system.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 11: The Corporate Taxpayer

The dividends-received deduction is equal to 65% of any dividends-received by a corporate taxpayer.

A corporation that is unable to meet its original filing deadline may obtain an automatic twelve-month extension of the time to file its federal income tax return.

For distributions prior to 2018, dividends-received deductions generally are not allowed for dividends from foreign corporations.

The federal tax law considers the member corporations of an affiliated group to be a single entity for federal tax purposes.

A nonprofit corporation may incur a federal income tax if it has unrelated business income.

What is the extended due date of the federal income tax return of a corporation with a tax year ended June 30, 2020?

The corporate characteristic of limited liability is generally more important to the shareholders than the characteristic of centralized management.

The burden of corporate taxation is often borne by corporate shareholders, customers, employees, and suppliers.

Forward Inc.'s 2021 book income of $739,000 includes a net long-term capital loss of $42,000 and charitable contribution of $170,000. Taxable income shown on the Schedule M-1 would be:

Westside, Inc. owns 15% of Innsbrook's common stock. This year, Westside generated $50,000 operating income and received $20,000 dividends from Innsbrook. Westside's taxable income is:

Harmon, Inc. was incorporated and began business on January 1, 2020. Its tax liability for 2020 was $36,000. Its tax liability for 2021 was $50,000. Which of the following is a correct statement concerning the payment of estimated taxes for 2021?

Corporations report their taxable income and calculate the federal income tax on Form 1040.

Airfreight Corporation has book income of $370,000. Book income includes a $25,000 gain realized on a like-kind nontaxable exchange of realty. Based only on these items, compute Airfreight's taxable income.

Forward Inc.'s book income of $739,000 includes a net long-term capital loss of $42,000 and charitable contribution of $170,000. Taxable income shown on the Schedule M-1 would be:

In determining the incidence of the corporate income tax:

If a corporation has accumulated minimum tax credits from tax years prior to 2018, 100 percent of such credits are refundable on either their 2018 or 2019 tax return.

The double taxation of corporate earnings is one of the dominant characteristics of the federal income tax system.

Taxes and Taxing Jurisdictions

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters