Question 1

Identify which of the following statements is false.

Accepted Answer

A) A corporation's fiscal year generally must end on the last day of the month. 
B) A fiscal year may not end on December 31. 
C) A new corporation can elect a fiscal year that runs from February 16 to February 15 of the following year. 
D) A corporation's first tax year may not cover a full 12-month period. 
A) A corporation's fiscal year generally must end on the last day of the month. 
B) A fiscal year may not end on December 31. 
C) A new corporation can elect a fiscal year that runs from February 16 to February 15 of the following year. 
D) A corporation's first tax year may not cover a full 12-month period.

Question 2

Dallas Corporation, not a dealer in securities, realizes taxable income of $60,000 from the operation of its business. Additionally, in the same year, Dallas realizes a long-term capital loss of $10,000 from the sale of marketable securities. If the corporation realizes no other capital gains or losses, what is the proper treatment for the $10,000 long-term capital loss on the tax return?

Accepted Answer

A) Use $3,000 of the loss to reduce taxable income and carry $7,000 of the long-term capital loss forward for five years. 
B) Use $6,000 of the loss to reduce taxable income and carry $4,000 of the long-term capital loss forward for five years. 
C) Use $10,000 of the long-term capital loss to reduce taxable income. 
D) Carry the $10,000 long-term capital loss back three years as a short-term capital loss, then forward five years. 
A) Use $3,000 of the loss to reduce taxable income and carry $7,000 of the long-term capital loss forward for five years. 
B) Use $6,000 of the loss to reduce taxable income and carry $4,000 of the long-term capital loss forward for five years. 
C) Use $10,000 of the long-term capital loss to reduce taxable income. 
D) Carry the $10,000 long-term capital loss back three years as a short-term capital loss, then forward five years.

Question 3

Identify which of the following statements is true.

Accepted Answer

A) A corporation that is a member of an affiliated group filing a consolidated tax return may be allowed a tax year which is different from the group's parent. 
B) An S corporation must generally use a calendar year. 
C) A corporation's first year must cover a twelve-month period. 
D) All of the above are false. 
A) A corporation that is a member of an affiliated group filing a consolidated tax return may be allowed a tax year which is different from the group's parent. 
B) An S corporation must generally use a calendar year. 
C) A corporation's first year must cover a twelve-month period. 
D) All of the above are false.

Question 4

Prince Corporation donates inventory having an adjusted basis of $26,000 and an FMV of $40,000 to County Hospital, which is a qualified public charity. What is the amount of Prince's deduction?

Accepted Answer

Prince may deduct the adjusted basis plu

Question 5

Maxwell Corporation reports the following results:   Maxwell's dividends-received deduction is

Accepted Answer

A) $30,000. 
B) $35,000. 
C) $56,000. 
D) $70,000. 
A) $30,000. 
B) $35,000. 
C) $56,000. 
D) $70,000.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If a corporation's charitable contributions exceed the deduction limitation in a particular year, the excess

Accepted Answer

A) is not deductible in any future year. 
B) becomes a carryover to a maximum of five succeeding years. 
C) may be carried back to the third preceding year. 
D) is carried over indefinitely. 
A) is not deductible in any future year. 
B) becomes a carryover to a maximum of five succeeding years. 
C) may be carried back to the third preceding year. 
D) is carried over indefinitely.

Question 8

Organizational expenses incurred after 2019 are amortized over five years.

Accepted Answer

A) True 
 B)False

Question 9

Joker Corporation owns 80% of Klue Corporation. Joker Corporation also owns 45% of Lion Corporation and 45% of Mark Corporation. Klue Corporation owns 40% of Lion Corporation and 10% of Mark Corporation. Which corporations are members of a controlled group?

Accepted Answer

A) Klue, Lion, and Mark Corporations 
B) Joker, Klue, Lion, and Mark Corporations 
C) Joker, Klue, and Lion Corporations 
D) Joker and Klue Corporations 
A) Klue, Lion, and Mark Corporations 
B) Joker, Klue, Lion, and Mark Corporations 
C) Joker, Klue, and Lion Corporations 
D) Joker and Klue Corporations

Question 10

Corporations may carry charitable contributions in excess of the income limitation forward for five years.

Accepted Answer

A) True 
 B)False

Question 11

Courtney Corporation had the following income and expenses for the tax year:   Determine the corporation's NOL for the current year.

Accepted Answer

The answer of Courtney Corporation had the following income and...

Question 12

When computing corporate taxable income, what is the proper sequencing of deductions?

Accepted Answer

The correct order for taking deductions

Question 13

Evans Corporation has a $15,000 net capital loss in 2017. The corporation reported the following capital gain netting in income during the past three years. Identify which of the following statements is true.

Accepted Answer

A) The loss is used to offset the gains from 2016 and then carried back to offset $10,000 of the gains in 2014. 
B) The loss is used to offset the $11,000 of the 2015 gains and then carried back to offset $4,000 of the year 2014 net gain. 
C) The loss is used to offset $3,000 of 2014, 2015 and 2016 capital gains, remaining amount carried forward at $3,000 a year until expired. 
D) The loss is used to offset the year 2014 net gains, then $5,000 of the year 2015 net gains. 
A) The loss is used to offset the gains from 2016 and then carried back to offset $10,000 of the gains in 2014. 
B) The loss is used to offset the $11,000 of the 2015 gains and then carried back to offset $4,000 of the year 2014 net gain. 
C) The loss is used to offset $3,000 of 2014, 2015 and 2016 capital gains, remaining amount carried forward at $3,000 a year until expired. 
D) The loss is used to offset the year 2014 net gains, then $5,000 of the year 2015 net gains.

Question 14

Once a corporation has elected a taxable year, it can change the taxable year without IRS permission if

Accepted Answer

A) the resulting short period has a net operating loss of $100,000 that the corporation wants to carry forward. 
B) the corporation changed its taxable year seven years ago. 
C) the corporation is not an S corporation. 
D) a corporation can change its taxable year without IRS permission in all of the above situations. 
A) the resulting short period has a net operating loss of $100,000 that the corporation wants to carry forward. 
B) the corporation changed its taxable year seven years ago. 
C) the corporation is not an S corporation. 
D) a corporation can change its taxable year without IRS permission in all of the above situations.

Question 15

Webster, who owns all the Bear Corporation stock, purchases a dump truck from Bear Corporation in January. The truck cost $12,000 and has a $10,000 adjusted basis at the time of the sale. Webster pays Bear the truck's $8,000 FMV. Later in the same year, Webster sells the dump truck to an unrelated party for $6,000. Webster can recognize a loss of

Accepted Answer

A) $4,000. 
B) $2,000. 
C) $3,000. 
D) $5,000. 
A) $4,000. 
B) $2,000. 
C) $3,000. 
D) $5,000.

Question 16

Walter, who owns all of the Ajax Corporation stock, purchases a truck from Ajax Corporation in January. The truck cost $12,000 and has a $10,000 adjusted basis. Walter pays the truck's $8,000 FMV. Later in the same year, Walter sells the truck to an unrelated party for $13,000. With respect to these transactions

Accepted Answer

A) Ajax Corporation reports a loss of $2,000 and Walter reports a gain of $5,000. 
B) Ajax Corporation reports no loss and Walter reports a gain of $3,000. 
C) Ajax Corporation reports a loss of $4,000 and Walter reports a gain of $5,000. 
D) Ajax Corporation reports no loss and Walter reports a gain of $5,000. 
A) Ajax Corporation reports a loss of $2,000 and Walter reports a gain of $5,000. 
B) Ajax Corporation reports no loss and Walter reports a gain of $3,000. 
C) Ajax Corporation reports a loss of $4,000 and Walter reports a gain of $5,000. 
D) Ajax Corporation reports no loss and Walter reports a gain of $5,000.

Question 17

Identify which of the following statements is true.

Accepted Answer

A) For expenses incurred after December 31, 2017, no deduction is allowed for any activities involving entertainment, amusement, or recreation, including expenses related to a facility used in connection with these activities. 
B) The Dividends Received Deduction for individuals is limited to 50%. 
C) Domestic Production Activities Deduction carry overs that originated from pre 2018 tax years are limited to 50% of taxable income until 2025. 
D) Deductibility of business interest in a given year is limited to 80% of adjusted taxable income. 
A) For expenses incurred after December 31, 2017, no deduction is allowed for any activities involving entertainment, amusement, or recreation, including expenses related to a facility used in connection with these activities. 
B) The Dividends Received Deduction for individuals is limited to 50%. 
C) Domestic Production Activities Deduction carry overs that originated from pre 2018 tax years are limited to 50% of taxable income until 2025. 
D) Deductibility of business interest in a given year is limited to 80% of adjusted taxable income.

Question 18

Jackson Corporation, not a dealer in securities, realizes taxable income of $80,000 from the operation of its business. Additionally, Jackson Corporation realizes a $10,000 long-term capital loss from the sale of marketable securities. Explain the treatment of the loss on the corporate return for this and any other years.

Accepted Answer

The loss cannot be deducted this year si

Question 19

Jackel, Inc. has the following information for the current tax year:   What is Jackel's charitable contribution deduction? What is Jackel's taxable income?

Accepted Answer

@#IMG-DLM& The 10% charitable contributi

Question 20

Identify which of the following statements is true.

Accepted Answer

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

Identify which of the following statements is false.

Identify which of the following statements is true.

Prince Corporation donates inventory having an adjusted basis of $26,000 and an FMV of $40,000 to County Hospital, which is a qualified public charity. What is the amount of Prince's deduction?

Maxwell Corporation reports the following results: Maxwell's dividends-received deduction is

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

If a corporation's charitable contributions exceed the deduction limitation in a particular year, the excess

Organizational expenses incurred after 2019 are amortized over five years.

Joker Corporation owns 80% of Klue Corporation. Joker Corporation also owns 45% of Lion Corporation and 45% of Mark Corporation. Klue Corporation owns 40% of Lion Corporation and 10% of Mark Corporation. Which corporations are members of a controlled group?

Corporations may carry charitable contributions in excess of the income limitation forward for five years.

Courtney Corporation had the following income and expenses for the tax year: Determine the corporation's NOL for the current year.

When computing corporate taxable income, what is the proper sequencing of deductions?

Evans Corporation has a $15,000 net capital loss in 2017. The corporation reported the following capital gain netting in income during the past three years. Identify which of the following statements is true.

Once a corporation has elected a taxable year, it can change the taxable year without IRS permission if

Identify which of the following statements is true.

Jackel, Inc. has the following information for the current tax year: What is Jackel's charitable contribution deduction? What is Jackel's taxable income?

Identify which of the following statements is true.

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

Us Taxation of Foreign-Related Transactions

Filters

Exam 3: The Corporate Income Tax

Identify which of the following statements is false.

Identify which of the following statements is true.

Prince Corporation donates inventory having an adjusted basis of $26,000 and an FMV of $40,000 to County Hospital, which is a qualified public charity. What is the amount of Prince's deduction?

Maxwell Corporation reports the following results: Maxwell's dividends-received deduction is

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

If a corporation's charitable contributions exceed the deduction limitation in a particular year, the excess

Organizational expenses incurred after 2019 are amortized over five years.

Joker Corporation owns 80% of Klue Corporation. Joker Corporation also owns 45% of Lion Corporation and 45% of Mark Corporation. Klue Corporation owns 40% of Lion Corporation and 10% of Mark Corporation. Which corporations are members of a controlled group?

Corporations may carry charitable contributions in excess of the income limitation forward for five years.

Courtney Corporation had the following income and expenses for the tax year: Determine the corporation's NOL for the current year.

When computing corporate taxable income, what is the proper sequencing of deductions?

Evans Corporation has a $15,000 net capital loss in 2017. The corporation reported the following capital gain netting in income during the past three years. Identify which of the following statements is true.

Once a corporation has elected a taxable year, it can change the taxable year without IRS permission if

Identify which of the following statements is true.

Jackel, Inc. has the following information for the current tax year: What is Jackel's charitable contribution deduction? What is Jackel's taxable income?

Identify which of the following statements is true.

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

Us Taxation of Foreign-Related Transactions

Filters