Exam 15: Corporate Taxation

Blue Company has taxable income of $90,000 before charitable contributions.The company made a $10,000 cash contribution to the local university.What is the tax liability of the company for the year?

(Multiple Choice)

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Question 61

A C corporation can become a Subchapter S corporation by filing a statement with its corporate income tax return.

(True/False)

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Question 62

A corporation subject to AMT has AMT income of $190,000.What is the amount of alternative minimum tax?

(Multiple Choice)

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Question 63

Determine the basis of stock in the hands of the shareholder,the basis to the corporation of the contributed property,and the gain,if any,to the shareholder in each of the following independent cases.In all cases,assume that the 80% test is met. a.Pierre contributes a vehicle with a FMV of $6,000 and basis of $8,000. b.Marcus contributes land with a FMV of $500,000,basis of $300,000,and debt of $250,000. c.Same as b.except Marcus also receives cash of $25,000. d.Patricia contributes an apartment building with a FMV of $200,000,basis of $50,000,and debt of $125,000.

(Essay)

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Question 64

If a shareholder receives cash from a corporation in complete liquidation of his or her ownership interest and the cash received is less than the shareholder's basis in the stock,the shareholder will report a loss.

(True/False)

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Question 65

Windy Company has taxable income before DRD of $200,000.Included in that amount is a $10,000 dividend from a domestic corporation owned 10% by Windy and a $30,000 dividend from a domestic corporation owned 60% by Windy.What is the taxable income of Windy Company?

(Multiple Choice)

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Question 66

Determine the amount of taxable dividend,return of capital,and capital gain in each of the following independent cases. a.Corporate earnings and profits of $100,000; stockholder basis in stock of $60,000; distribution of $20,000. b.Corporate earnings and profits of $25,000; stockholder basis in stock of $40,000; distribution of $70,000. c.Corporate earnings and profits of $300,000; stockholder basis in stock of $450,000; distribution of $350,000.

(Essay)

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Question 67

A corporation must file Form 1120 2½ months after the end of its fiscal year.

(True/False)

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Question 68

Barrie owns 100% of a Subchapter S corporation and her basis in the stock is $200,000.In the current year,the corporation reports an ordinary loss of $250,000 and interest income of $20,000.How much of the loss can Barrie claim in the current year?

(Multiple Choice)

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Question 69

A C corporation has a fiscal year-end of August 30.It requests an automatic extension of time to file its income tax return.It must file its return no later than the 15^th day of:

(Multiple Choice)

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Question 70

The basis of property received by a corporation is equal to the basis in the hands of the shareholder plus any gain recognized by the shareholder.

(True/False)

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Question 71

To legally operate as a corporation in most states,the incorporators must simply file a corporate federal income tax return.

(True/False)

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Question 72

Corporate distributions in excess of earnings and profits are a capital gain to a stockholder.

(True/False)

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Question 73

Caesar owns 100% of Roman Company and his basis in its stock is $35,000.He receives cash of $10,000 and property with FMV of $30,000 and basis of $50,000 in complete liquidation of his ownership interest.As a result of this transaction,which of the following statements is incorrect?

(Multiple Choice)

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Question 74

Felix 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 $300,000 and debt of $500,000.The basis of the land,in the hands of the corporation is:

(Multiple Choice)

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Question 75

Zeus owns 100% of Grecian Image Corporation and his basis in the stock is $105,000.He receives cash of $20,000 and property with FMV of $100,000 and basis of $140,000 in complete liquidation of his ownership interest.What amount of gain or loss should Zeus recognize as a result of this transaction?

(Multiple Choice)

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Question 76

MMM Company has taxable income of $300,000.The company received a dividend of $50,000 from a domestic corporation in which it holds a 60% ownership interest.It also has tax depreciation that is $20,000 greater than financial statement depreciation.These items were properly accounted for in determining taxable income.Without regard to tax expense,what is financial statement income of MMM Company?

(Multiple Choice)

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Question 77

Sunshine Company has book income of $250,000.It also has tax depreciation in excess of book depreciation of $30,000 and $10,000 of interest on tax-exempt bonds.Without regard to tax expense,what is Sunshine's taxable income?

(Multiple Choice)

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(78)

Question 78

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

(Multiple Choice)

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Question 79

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 basis in his stock is:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 127

Blue Company has taxable income of $90,000 before charitable contributions.The company made a $10,000 cash contribution to the local university.What is the tax liability of the company for the year?

A C corporation can become a Subchapter S corporation by filing a statement with its corporate income tax return.

A corporation subject to AMT has AMT income of $190,000.What is the amount of alternative minimum tax?

If a shareholder receives cash from a corporation in complete liquidation of his or her ownership interest and the cash received is less than the shareholder's basis in the stock,the shareholder will report a loss.

Windy Company has taxable income before DRD of $200,000.Included in that amount is a $10,000 dividend from a domestic corporation owned 10% by Windy and a $30,000 dividend from a domestic corporation owned 60% by Windy.What is the taxable income of Windy Company?

A corporation must file Form 1120 2½ months after the end of its fiscal year.

Barrie owns 100% of a Subchapter S corporation and her basis in the stock is $200,000.In the current year,the corporation reports an ordinary loss of $250,000 and interest income of $20,000.How much of the loss can Barrie claim in the current year?

A C corporation has a fiscal year-end of August 30.It requests an automatic extension of time to file its income tax return.It must file its return no later than the 15^th day of:

The basis of property received by a corporation is equal to the basis in the hands of the shareholder plus any gain recognized by the shareholder.

To legally operate as a corporation in most states,the incorporators must simply file a corporate federal income tax return.

Corporate distributions in excess of earnings and profits are a capital gain to a stockholder.

Caesar owns 100% of Roman Company and his basis in its stock is $35,000.He receives cash of $10,000 and property with FMV of $30,000 and basis of $50,000 in complete liquidation of his ownership interest.As a result of this transaction,which of the following statements is incorrect?

Felix 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 $300,000 and debt of $500,000.The basis of the land,in the hands of the corporation is:

Zeus owns 100% of Grecian Image Corporation and his basis in the stock is $105,000.He receives cash of $20,000 and property with FMV of $100,000 and basis of $140,000 in complete liquidation of his ownership interest.What amount of gain or loss should Zeus recognize as a result of this transaction?

Sunshine Company has book income of $250,000.It also has tax depreciation in excess of book depreciation of $30,000 and $10,000 of interest on tax-exempt bonds.Without regard to tax expense,what is Sunshine's taxable income?

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

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 basis in his stock is:

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Filters

Exam 15: Corporate Taxation

Blue Company has taxable income of $90,000 before charitable contributions.The company made a $10,000 cash contribution to the local university.What is the tax liability of the company for the year?

A C corporation can become a Subchapter S corporation by filing a statement with its corporate income tax return.

A corporation subject to AMT has AMT income of $190,000.What is the amount of alternative minimum tax?

If a shareholder receives cash from a corporation in complete liquidation of his or her ownership interest and the cash received is less than the shareholder's basis in the stock,the shareholder will report a loss.

Windy Company has taxable income before DRD of $200,000.Included in that amount is a $10,000 dividend from a domestic corporation owned 10% by Windy and a $30,000 dividend from a domestic corporation owned 60% by Windy.What is the taxable income of Windy Company?

A corporation must file Form 1120 2½ months after the end of its fiscal year.

Barrie owns 100% of a Subchapter S corporation and her basis in the stock is $200,000.In the current year,the corporation reports an ordinary loss of $250,000 and interest income of $20,000.How much of the loss can Barrie claim in the current year?

A C corporation has a fiscal year-end of August 30.It requests an automatic extension of time to file its income tax return.It must file its return no later than the 15th day of:

The basis of property received by a corporation is equal to the basis in the hands of the shareholder plus any gain recognized by the shareholder.

To legally operate as a corporation in most states,the incorporators must simply file a corporate federal income tax return.

Corporate distributions in excess of earnings and profits are a capital gain to a stockholder.

Caesar owns 100% of Roman Company and his basis in its stock is $35,000.He receives cash of $10,000 and property with FMV of $30,000 and basis of $50,000 in complete liquidation of his ownership interest.As a result of this transaction,which of the following statements is incorrect?

Felix 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 $300,000 and debt of $500,000.The basis of the land,in the hands of the corporation is:

Zeus owns 100% of Grecian Image Corporation and his basis in the stock is $105,000.He receives cash of $20,000 and property with FMV of $100,000 and basis of $140,000 in complete liquidation of his ownership interest.What amount of gain or loss should Zeus recognize as a result of this transaction?

Sunshine Company has book income of $250,000.It also has tax depreciation in excess of book depreciation of $30,000 and $10,000 of interest on tax-exempt bonds.Without regard to tax expense,what is Sunshine's taxable income?

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

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 basis in his stock is:

Introduction to Taxation, the Income Tax Formula, and Form 1040ez

Expanded Tax Formula, Forms 1040a and 1040, and Basic Concepts

Gross Income: Inclusions and Exclusions

Adjustments for Adjusted Gross Income

Itemized Deductions

Self-Employed Business Income

Capital Gains and Other Sales of Property

Rental Property, Royalties, and Income From Flow-Through Entities

Tax Credits

Payroll Taxes

Retirement and Other Tax-Deferred Plans and Annuities

Special Property Transactions

At-Riskpassive Activity Loss Rules and the Individual Alternative Minimum Tax

Partnership Taxation

Filters

A C corporation has a fiscal year-end of August 30.It requests an automatic extension of time to file its income tax return.It must file its return no later than the 15^th day of: