Exam 32: Corporations

Dixie Corporation distributes $31,000 to its sole shareholder,Sally.At the time of the distribution,Dixie's E&P is $25,000 and Sally's basis in her Dixie stock is $10,000.Sally's basis in her Dixie stock after the distribution is

Corporations may deduct 80% of dividends received from a domestic corporation if the recipient corporation owns 20% or more and less than 80% of the voting power and value of the stock of the issuing corporation.

Chocolat Inc.is a U.S.chocolate manufacturer.Its domestic production income is $2,000,000.Taxable income before the domestic production deduction is $3,000,000.What is the amount of the production activities deduction?

Bartlett Corporation,a U.S.manufacturer,reports the following results in its financial accounting records: The dividend income is from very minor holdings in U.S.stocks.Calculate Bartlett's taxable income,income tax liability and any carryovers generated.

Unused charitable contributions of a corporation are carried forward ten years.

Identify which of the following statements is true.

A corporation may make an election to forego the NOL carryback in order to carry the NOL forward only.

Partnerships,limited liability partnerships,limited liability companies,and C corporations are considered flow-through entities for tax purposes.

Crowley Corporation has the following income during the current year: What is the amount of the corporation's taxable income?

A corporation realizes a NSTCL this year of $43,000.It will only be able to deduct $3,000 this year.

Oak Corporation manufactures widgets in its factory in Houma,Louisiana.Its taxable income (before the production deduction)is $200,000 and its net income from qualified production activities is $180,000.What is the amount of Oak Corporation's qualified production activities deduction?

Jenkins Corporation has the following income and expense items during the current year: The allowed dividends-received deduction is

Identify which of the following statements is true.

Whaler Corporation makes a liquidating distribution of land with a $70,000 adjusted basis and a $100,000 FMV to shareholder Horton,who surrenders his Whaler stock (adjusted basis $60,000)to the corporation.Alice,another shareholder,receives $100,000 cash for her shares ($115,000 adjusted basis). a.What are the tax consequences to Whaler Corporation? b.What are the tax consequences to both Horton and Alice? c.What is Horton's basis in the land?

In a parent-subsidiary controlled group,the common parent corporation must own at least 80% of the stock of each subsidiary corporation in the group.

Nguyen Corporation,a calendar-year corporation,has a $40,000 current E&P deficit and a $60,000 positive accumulated E&P balance.Also assume that shareholders of the corporation have a total basis in outstanding shares of $35,000.A $75,000 distribution is made to the shareholders on the last day of the year.What is the tax treatment of the $75,000 distribution to the shareholders?

A corporation has a tax year ending December 31,2017.When is the due date for the corporate income tax return (with no extensions)?

A corporation realizes a NLTCL this year.The loss cannot be deducted in the current year.It must be carried back two years and then carried forward 20 years.

One requirement of a personal holding company is that more than 50% of the value of the outstanding stock must be owned by five or fewer individuals at some time during the last 6 months of the tax year.

Which of the statements is inaccurate regarding requirements for nonrecognition of gain or loss upon the transfer of assets to a corporation in exchange for stock?