Exam 15: Corporate Taxation

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

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

Once a corporation properly elects to be a Subchapter S corporation,it cannot terminate its election for five years.

JJJ Company has earnings and profits of $30,000.The corporation distributes property with a basis of $40,000 and a FMV of $35,000 to Jill,its sole shareholder.Her basis in the stock is $30,000.Which of the following statements is correct?

A domestic corporation can receive a deduction for dividend income it receives from another domestic corporation.

Which of the following statements is incorrect with respect to parent-subsidiary corporations?

Which of the following statements is correct?

All C corporations file their tax returns using a Form 1120.

If a domestic corporation receives a dividend from another domestic corporation,it is entitled to a dividends received deduction of 70%,80%,or 100%.

The corporate alternative minimum tax exemption begins to phase out for AMT income of _______,and is completely phased out at AMT income of _______ or more.

Black Company is a Subchapter S corporation.It reported book income of $100,000.Included in that amount is dividend income of $5,000,a net capital loss of $4,000,and a charitable contribution of $20,000.Determine the ordinary income/loss of the corporation and the nature and amount of any separately stated items.

Ramona is a 50% shareholder in a Subchapter S corporation.At the beginning of the year,her basis in the stock was $100,000.The corporation reported total ordinary income of $60,000 and total dividend income of $20,000.The corporation also borrowed an additional $20,000 from a local bank.What is the basis of Ramona's stock at the end of the year?

Aqua Company has net income for financial statement purposes of $100,000.On its financial statements it recorded a charitable contribution of $20,000 and federal income tax expense of $30,000.What is Aqua's taxable income?

Which of the following statements is true?

Which of the following items decrease basis for a stockholder of a Subchapter S corporation?

Which of the following items is subtracted from book income to arrive at taxable income?

A shareholder's basis in Subchapter S stock is increased by his or her share of all of the following except:

Alabaster Company is a Subchapter S corporation.It properly reported net income of $250,000 for financial statement purposes.It had net capital gains of $60,000 and charitable contributions of $20,000.What is the ordinary business income (loss)of Alabaster Company that will be reported to its shareholders on Schedule K-1?

The basis of a shareholder in his or her Subchapter S stock is increased by his or her share of corporate charitable contributions.

A corporation has a fiscal year-end of September 30.If the corporation receives an automatic extension to file its return,the return will be due on the 15^th day of: