Question 1

The corporate alternative minimum tax exemption amount is $150,000.

Accepted Answer

A) True 
 B)False

Question 2

Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders.

Accepted Answer

A)  The shareholders will report a gain. 
B)  The corporation will report a gain. 
C)  The shareholders will report dividend income equal to the basis of the property distributed. 
D)  The corporation will report dividend expense equal to the fair value of the property distributed. 
A)  The shareholders will report a gain. 
B)  The corporation will report a gain. 
C)  The shareholders will report dividend income equal to the basis of the property distributed. 
D)  The corporation will report dividend expense equal to the fair value of the property distributed.

Question 3

When a corporation is formed,if the transferors own 80% or more of the corporation immediately after the exchange,then the transaction is,generally,tax-free.

Accepted Answer

A) True 
 B)False

Question 4

Valarie owns 100% of Green Company.Green has earnings and profits of $10,000.The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie.She must report dividend income of:

Accepted Answer

A)  $2,000. 
B)  $9,000. 
C)  $10,000. 
D)  $12,000. 
A)  $2,000. 
B)  $9,000. 
C)  $10,000. 
D)  $12,000.

Question 5

Corporate tax returns are due 3.5 months after the end of their tax year,the same as individual income tax returns.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is correct?

Accepted Answer

A)  50% of travel and entertainment expenses are added to taxable income to arrive at book income. 
B)  Federal income tax expense is subtracted from book income to arrive at taxable income. 
C)  Tax-exempt interest income is subtracted from taxable income to arrive at book income. 
D)  Charitable contributions in excess of the 10% limit are added to book income to arrive at taxable income. 
A)  50% of travel and entertainment expenses are added to taxable income to arrive at book income. 
B)  Federal income tax expense is subtracted from book income to arrive at taxable income. 
C)  Tax-exempt interest income is subtracted from taxable income to arrive at book income. 
D)  Charitable contributions in excess of the 10% limit are added to book income to arrive at taxable income.

Question 7

Sunrise Corporation owns 30% of Sunset Corporation.Both are domestic corporations.Sunset pays a $10,000 dividend to Sunrise.What amount of dividend income will be included in the taxable income of Sunrise Corporation?

Accepted Answer

A)  $2,000. 
B)  $3,000. 
C)  $8,000. 
D)  $10,000. 
A)  $2,000. 
B)  $3,000. 
C)  $8,000. 
D)  $10,000.

The corporate alternative minimum tax exemption amount is $150,000.

Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders.

When a corporation is formed,if the transferors own 80% or more of the corporation immediately after the exchange,then the transaction is,generally,tax-free.

Valarie owns 100% of Green Company.Green has earnings and profits of $10,000.The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie.She must report dividend income of:

Corporate tax returns are due 3.5 months after the end of their tax year,the same as individual income tax returns.

Which of the following statements is correct?

Sunrise Corporation owns 30% of Sunset Corporation.Both are domestic corporations.Sunset pays a $10,000 dividend to Sunrise.What amount of dividend income will be included in the taxable income of Sunrise Corporation?

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

The corporate alternative minimum tax exemption amount is $150,000.

Grape Corporation makes a nonliquidating distribution of appreciated property to its shareholders.

When a corporation is formed,if the transferors own 80% or more of the corporation immediately after the exchange,then the transaction is,generally,tax-free.

Valarie owns 100% of Green Company.Green has earnings and profits of $10,000.The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie.She must report dividend income of:

Corporate tax returns are due 3.5 months after the end of their tax year,the same as individual income tax returns.

Which of the following statements is correct?

Sunrise Corporation owns 30% of Sunset Corporation.Both are domestic corporations.Sunset pays a $10,000 dividend to Sunrise.What amount of dividend income will be included in the taxable income of Sunrise Corporation?

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