Exam 15: Corporate Taxation

Teal Corporation has taxable income of $320,000.The corporation had total travel and entertainment expenses of $50,000,charitable contributions of $10,000,and tax depreciation in excess of book depreciation of $45,000.Without regard to tax expense for financial statement purposes,what is the book net income of Teal?

When are estimated income tax payments due for a corporation with a fiscal year-end of November? What if the fiscal year-end is June?

Keisha is a shareholder in a corporation.She received a distribution of property from the earnings and profits of the corporation.Keisha will report dividend income equal to the FMV of the property received.

Keisha owns 100% of DEF Company and has a basis of $10,000 in its stock.DEF has earnings and profits of $9,000 and distributes a cash dividend to Keisha of $12,000.Keisha has a:

What is the AMT exemption amount for a corporation with AMT income of $250,000?

A shareholder of a Subchapter S corporation is required to personally report his or her proportionate share of corporate net income.

Which of the following will disqualify a corporation from electing Subchapter S status?

C Corporations are not permitted to report a net capital loss.

STU Corporation has taxable income before DRD of $27,000 that includes a dividend of $30,000 from a large publicly-traded domestic corporation.What is the taxable income of STU Corporation?

Schedule M-1 reconciles from taxable income to book income.

Adam owns 100% of Banana Company and has a basis of $60,000 in its stock.The company has earnings and profits of $54,000 and distributes a cash dividend to Adam of $72,000.Adam has a:

There are four characteristics that a C Corporation must meet in order to elect Subchapter S status.List the characteristics.

If a corporation has a net capital loss,the loss is carried forward indefinitely.

TTT Corporation has a fiscal year-end that ends on March 30.It is required to make quarterly estimated payments.The first estimated payment will be due on the 15^th of:

Arturo transfers land with a FMV of $900,000 to a newly-formed corporation in exchange for all of the stock.The land has a basis of $600,000 and debt of $400,000.The basis of the land,in the hands of the corporation is:

The maximum marginal corporate tax rate is 35%.

Shauntae receives a distribution from a corporation in complete liquidation of his ownership interest.Shauntae could report a capital gain,but not a capital loss,from the distribution.

When reconciling from book income to taxable income on Schedule M-1,which of the following statements is correct?

Andre formed a corporation and owns all of the stock.He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation.Andre's taxable gain is:

What is the dividends received deduction (DRD)in each of the following independent cases? a.Taxable income before DRD is $50,000.Dividend from a 30%-owned domestic corporation is $5,000. b.Taxable income before DRD is $300,000.Dividend from a 10%-owned domestic corporation is $75,000. c.Taxable income before DRD is $80,000.Dividend from a 60%-owned domestic corporation is $90,000.