Question 1

Identify which of the following statements is false.

Accepted Answer

A) The corporate AMT produces relatively little tax revenue. 
B) The small corporation AMT exemption exempts 95% of all corporations from the AMT. 
C) The corporate AMT is similar to the AMT for individuals. 
D) The starting point for computing a corporation's AMT is book income. 
A) The corporate AMT produces relatively little tax revenue. 
B) The small corporation AMT exemption exempts 95% of all corporations from the AMT. 
C) The corporate AMT is similar to the AMT for individuals. 
D) The starting point for computing a corporation's AMT is book income.

Question 2

Which of the following is not an adjustment in calculating AMTI?

Accepted Answer

A) gain on installment sales of noninventory property 
B) the regular tax NOL deduction 
C) production activities deduction 
D) the difference between the gains for AMTI and regular tax purposes 
A) gain on installment sales of noninventory property 
B) the regular tax NOL deduction 
C) production activities deduction 
D) the difference between the gains for AMTI and regular tax purposes

Question 3

Lake Corporation is a personal holding company.Lake reports the following results for the current year:   
No dividends are paid during the current year or the 2-and-one-half-month throwback period.The mortgage relates to the rental properties.Calculate the adjusted income from rents exclusion from personal holding company income.

Accepted Answer

@#IMG-DLM& The rents cannot be excluded

Question 4

A corporation cannot reasonably accumulate earnings to

Accepted Answer

A) protect against pending litigation. 
B) fund an employee retirement plan. 
C) self-insure. 
D) redeem stock of an elderly shareholder where such accumulation occurs prior to the shareholder's death. 
A) protect against pending litigation. 
B) fund an employee retirement plan. 
C) self-insure. 
D) redeem stock of an elderly shareholder where such accumulation occurs prior to the shareholder's death.

Question 5

Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return.   
What is Raptor's PHC tax,assuming that it does not pay any dividends?

Accepted Answer

@#IMG-DLM& * 80,000-

Question 6

Identify which of the following statements is false.

Accepted Answer

A) A corporation files a Schedule AE to report the amount of its accumulated earnings tax liability for the tax year. 
B) A corporation that is subject to the accumulated earnings tax may also be subject to interest and underpayment penalties on the amount of the unpaid liability. 
C) A corporation files a Schedule PH to report its PHC tax for the tax year. 
D) The corporate AMT liability is reported on Form 4626. 
A) A corporation files a Schedule AE to report the amount of its accumulated earnings tax liability for the tax year. 
B) A corporation that is subject to the accumulated earnings tax may also be subject to interest and underpayment penalties on the amount of the unpaid liability. 
C) A corporation files a Schedule PH to report its PHC tax for the tax year. 
D) The corporate AMT liability is reported on Form 4626.

Question 7

Identify which of the following statements is false.

Accepted Answer

A) Tax-exempt interest on certain private activity bonds may be taxed under the alternative minimum tax. 
B) Tax preference items and adjustments may either increase or decrease taxable income to obtain AMTI. 
C) Depending on the date an asset is placed in service,depreciation may be an adjustment to taxable income or a tax preference item for alternative minimum tax purposes. 
D) Different depreciation rules are used when computing taxable income and alternative minimum taxable income. 
A) Tax-exempt interest on certain private activity bonds may be taxed under the alternative minimum tax. 
B) Tax preference items and adjustments may either increase or decrease taxable income to obtain AMTI. 
C) Depending on the date an asset is placed in service,depreciation may be an adjustment to taxable income or a tax preference item for alternative minimum tax purposes. 
D) Different depreciation rules are used when computing taxable income and alternative minimum taxable income.

Question 8

Which of the following statements about the alternative minimum tax depreciation rules is correct?

Accepted Answer

A) The MACRS depreciation rules are used to calculate the depreciation deduction when calculating alternative minimum taxable income regardless of the date the property was placed in service. 
B) The excess of the gain reported on the disposition of tangible personal property for income tax purposes over the gain reported for alternative minimum tax purposes is a positive adjustment to taxable income in arriving at alternative minimum taxable income. 
C) A 31.5-year recovery period is used when calculating the commercial real property depreciation deduction for alternative minimum taxable income purposes. 
D) No depreciation adjustment is made when computing AMT for real property acquired after 1998. 
A) The MACRS depreciation rules are used to calculate the depreciation deduction when calculating alternative minimum taxable income regardless of the date the property was placed in service. 
B) The excess of the gain reported on the disposition of tangible personal property for income tax purposes over the gain reported for alternative minimum tax purposes is a positive adjustment to taxable income in arriving at alternative minimum taxable income. 
C) A 31.5-year recovery period is used when calculating the commercial real property depreciation deduction for alternative minimum taxable income purposes. 
D) No depreciation adjustment is made when computing AMT for real property acquired after 1998.

Question 9

When computing the accumulated earnings tax,the dividends-paid deduction is not available for

Accepted Answer

A) dividends paid during the tax year. 
B) throwback dividends. 
C) stock dividends. 
D) All of the above are deductible. 
A) dividends paid during the tax year. 
B) throwback dividends. 
C) stock dividends. 
D) All of the above are deductible.

Question 10

Tax-exempt interest income on state and local municipal bonds that are not a private activity is

Accepted Answer

A) a tax preference item. 
B) a positive adjustment in calculating alternative minimum taxable income (AMTI). 
C) a negative adjustment in calculating alternative minimum taxable income (AMTI). 
D) included in calculating ACE (adjusted current earnings). 
A) a tax preference item. 
B) a positive adjustment in calculating alternative minimum taxable income (AMTI). 
C) a negative adjustment in calculating alternative minimum taxable income (AMTI). 
D) included in calculating ACE (adjusted current earnings).

Question 11

The NOL deduction is calculated the same for regular and alternative minimum tax purposes.

Accepted Answer

A) True 
 B)False

Question 12

Foster Corporation has gross income for regular tax purposes of $100,000,which includes a net Sec.1231 gain of $10,000 and a net capital gain of $10,000.Ordinary gross income for personal holding company purposes is

Accepted Answer

A) $70,000. 
B) $80,000. 
C) $90,000. 
D) $100,000. 
A) $70,000. 
B) $80,000. 
C) $90,000. 
D) $100,000.

Question 13

The personal holding company tax might be imposed

Accepted Answer

A) on both partnerships and corporations. 
B) on companies whose gross income arises solely from rentals,if the lessors render no services to the lessees. 
C) if more than 50% of the company is owned by five or fewer individuals for the entire year. 
D) on small business investment companies licensed by the Small Business Administration. 
A) on both partnerships and corporations. 
B) on companies whose gross income arises solely from rentals,if the lessors render no services to the lessees. 
C) if more than 50% of the company is owned by five or fewer individuals for the entire year. 
D) on small business investment companies licensed by the Small Business Administration.

Question 14

Identify which of the following statements is true.

Accepted Answer

A) The corporate alternative minimum tax rate is 35%. 
B) No credits are allowed when computing the tentative minimum tax. 
C) Tax preference items always increase alternative minimum taxable income. 
D) All of the above are false. 
A) The corporate alternative minimum tax rate is 35%. 
B) No credits are allowed when computing the tentative minimum tax. 
C) Tax preference items always increase alternative minimum taxable income. 
D) All of the above are false.

Question 15

In the last three years,Wolf Corporation had gross receipts of $3,000,000,$5,000,000,and $10,000,000.Which of the following statements is correct?

Accepted Answer

A) Wolf receives a statutory exemption of $40,000 based on its receipts. 
B) Wolf is exempt from the AMT. 
C) Wolf is subject to the AMT in the current year. 
D) There is insufficient information to determine whether Wolf is subject to the AMT. 
A) Wolf receives a statutory exemption of $40,000 based on its receipts. 
B) Wolf is exempt from the AMT. 
C) Wolf is subject to the AMT in the current year. 
D) There is insufficient information to determine whether Wolf is subject to the AMT.

Question 16

Mountaineer,Inc.has the following results:
 
What is the amount of the tentative minimum tax?

Accepted Answer

A) $500,000 
B) $360,000 
C) $460,000 
D) none of the above 
A) $500,000 
B) $360,000 
C) $460,000 
D) none of the above

Question 17

Barker Corporation,a personal service company,has $200,000 of taxable income.Barker has tax preferences and positive adjustments of $200,000 and negative adjustments of $140,000 for alternative minimum tax purposes.No credits are available.Barker's regular tax liability is $70,000.How much is its alternative minimum tax liability?

Accepted Answer

There is no alternative minimu

Question 18

How is alternative minimum taxable income computed?

Accepted Answer

Alternative minimum taxable income is th

Question 19

Identify which of the following statements is true.

Accepted Answer

A) The personal holding company taxes that are paid by a corporation can be used as a credit against its regular tax amount. 
B) Whether a corporation is subject to the personal holding company tax is determined by using two objective tests,while the determination of whether a corporation is subject to the accumulated earnings tax is determined subjectively. 
C) Income from personal service contracts are not included in personal holding company income. 
D) All of the above are false. 
A) The personal holding company taxes that are paid by a corporation can be used as a credit against its regular tax amount. 
B) Whether a corporation is subject to the personal holding company tax is determined by using two objective tests,while the determination of whether a corporation is subject to the accumulated earnings tax is determined subjectively. 
C) Income from personal service contracts are not included in personal holding company income. 
D) All of the above are false.

Question 20

Green Corporation,a closely held operating corporation,reports the following:   
Calculate Green's accumulated taxable income.

Accepted Answer

@#IMG-DLM& *$30,000 *.39% =$11

Identify which of the following statements is false.

Which of the following is not an adjustment in calculating AMTI?

A corporation cannot reasonably accumulate earnings to

Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return. What is Raptor's PHC tax,assuming that it does not pay any dividends?

Identify which of the following statements is false.

Identify which of the following statements is false.

Which of the following statements about the alternative minimum tax depreciation rules is correct?

When computing the accumulated earnings tax,the dividends-paid deduction is not available for

Tax-exempt interest income on state and local municipal bonds that are not a private activity is

The NOL deduction is calculated the same for regular and alternative minimum tax purposes.

Foster Corporation has gross income for regular tax purposes of $100,000,which includes a net Sec.1231 gain of $10,000 and a net capital gain of $10,000.Ordinary gross income for personal holding company purposes is

The personal holding company tax might be imposed

Identify which of the following statements is true.

In the last three years,Wolf Corporation had gross receipts of $3,000,000,$5,000,000,and $10,000,000.Which of the following statements is correct?

Mountaineer,Inc.has the following results: What is the amount of the tentative minimum tax?

How is alternative minimum taxable income computed?

Identify which of the following statements is true.

Green Corporation,a closely held operating corporation,reports the following: Calculate Green's accumulated taxable income.

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

US Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Us Taxation of Foreign-Related Transactions

Filters

Exam 5: Other Corporate Tax Levies

Identify which of the following statements is false.

Which of the following is not an adjustment in calculating AMTI?

A corporation cannot reasonably accumulate earnings to

Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return. What is Raptor's PHC tax,assuming that it does not pay any dividends?

Identify which of the following statements is false.

Identify which of the following statements is false.

Which of the following statements about the alternative minimum tax depreciation rules is correct?

When computing the accumulated earnings tax,the dividends-paid deduction is not available for

Tax-exempt interest income on state and local municipal bonds that are not a private activity is

The NOL deduction is calculated the same for regular and alternative minimum tax purposes.

Foster Corporation has gross income for regular tax purposes of $100,000,which includes a net Sec.1231 gain of $10,000 and a net capital gain of $10,000.Ordinary gross income for personal holding company purposes is

The personal holding company tax might be imposed

Identify which of the following statements is true.

In the last three years,Wolf Corporation had gross receipts of $3,000,000,$5,000,000,and $10,000,000.Which of the following statements is correct?

Mountaineer,Inc.has the following results: What is the amount of the tentative minimum tax?

How is alternative minimum taxable income computed?

Identify which of the following statements is true.

Green Corporation,a closely held operating corporation,reports the following: Calculate Green's accumulated taxable income.

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

US Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

Us Taxation of Foreign-Related Transactions

Filters