Question 1

A corporation may carry a net capital loss back three years and forward five years.

Accepted Answer

A) True 
 B)False

Question 2

Corporations may carry excess charitable contributions forward five years, but they may not carry them back.

Accepted Answer

A) True 
 B)False

Question 3

For 2018, accrual-method corporations cannot deduct charitable contributions until they actually make payment to the charity.

Accepted Answer

A) True 
 B)False

Question 4

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). What is Omnidata's annual estimated taxable income as of the end of the third quarter?

Accepted Answer

A)  $300,000. 
B)  $320,000. 
C)  $400,000. 
D)  $480,000. 
A)  $300,000. 
B)  $320,000. 
C)  $400,000. 
D)  $480,000.

Question 5

For a corporation, goodwill created in an asset acquisition generally leads to temporary book-tax differences.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding charitable contributions is False?

Accepted Answer

A)  Only contributions made to qualified charitable organizations are deductible. 
B)  Charitable contribution deductions are subject to a limitation based on the corporation's taxable income (before certain deductions). 
C)  Corporations can qualify to deduct a contribution before actually paying the contribution to the charity. 
D)  The amount deductible for non-cash contributions is always the adjusted basis of the property donated. 
A)  Only contributions made to qualified charitable organizations are deductible. 
B)  Charitable contribution deductions are subject to a limitation based on the corporation's taxable income (before certain deductions). 
C)  Corporations can qualify to deduct a contribution before actually paying the contribution to the charity. 
D)  The amount deductible for non-cash contributions is always the adjusted basis of the property donated.

Question 7

Schedule M-1 reconciles from book income to bottom line taxable income (the taxable income that is applied to the tax rates to determine the corporation's gross tax liability).

Accepted Answer

A) True 
 B)False

Question 8

Corporations are not allowed to deduct charitable contributions in excess of 10% of the corporation's taxable income (before the charitable contribution and certain other deductions).

Accepted Answer

A) True 
 B)False

Question 9

Which of the following describes the correct treatment of incentive stock options (ISOs)?

Accepted Answer

A)  Financial accounting-no expense; tax-no deduction. 
B)  Financial accounting-no expense; tax-deduct bargain element at exercise. 
C)  Financial-expense value over vesting period; tax-no deduction. 
D)  Financial-expense value over vesting period; tax-deduct bargain element at exercise. 
A)  Financial accounting-no expense; tax-no deduction. 
B)  Financial accounting-no expense; tax-deduct bargain element at exercise. 
C)  Financial-expense value over vesting period; tax-no deduction. 
D)  Financial-expense value over vesting period; tax-deduct bargain element at exercise.

A corporation may carry a net capital loss back three years and forward five years.

Corporations may carry excess charitable contributions forward five years, but they may not carry them back.

For 2018, accrual-method corporations cannot deduct charitable contributions until they actually make payment to the charity.

For a corporation, goodwill created in an asset acquisition generally leads to temporary book-tax differences.

Which of the following statements regarding charitable contributions is False?

Schedule M-1 reconciles from book income to bottom line taxable income (the taxable income that is applied to the tax rates to determine the corporation's gross tax liability).

Corporations are not allowed to deduct charitable contributions in excess of 10% of the corporation's taxable income (before the charitable contribution and certain other deductions).

Which of the following describes the correct treatment of incentive stock options (ISOs)?

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The U.S. Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 5: Corporate Operations

A corporation may carry a net capital loss back three years and forward five years.

Corporations may carry excess charitable contributions forward five years, but they may not carry them back.

For 2018, accrual-method corporations cannot deduct charitable contributions until they actually make payment to the charity.

For a corporation, goodwill created in an asset acquisition generally leads to temporary book-tax differences.

Which of the following statements regarding charitable contributions is False?

Schedule M-1 reconciles from book income to bottom line taxable income (the taxable income that is applied to the tax rates to determine the corporation's gross tax liability).

Corporations are not allowed to deduct charitable contributions in excess of 10% of the corporation's taxable income (before the charitable contribution and certain other deductions).

Which of the following describes the correct treatment of incentive stock options (ISOs)?

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The U.S. Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters