Question 1

Compare the distribution of property rules for an S corporation with the corresponding partnership rules.

Accepted Answer

The major difference involves distributi

Question 2

You are a 60% owner of an S corporation.Calculate your ending stock basis,based upon these facts.

Accepted Answer

$52,600 + $15,000 +.

Question 3

Tax-exempt income is a Schedule K item for an S corporation.

Accepted Answer

A) True 
 B)False

Question 4

Individuals Adam and Bonnie form an S corporation,with Adam contributing cash of $100,000 for a 50% interest and Bonnie contributing appreciated ordinary income property with an adjusted basis of $20,000 and a fair market value of $100,000.

Accepted Answer

The answer of Individuals Adam and Bonnie form an S...

Question 5

Four unrelated individuals acquire assets on behalf of Jump Corporation on May 21,2012,purchased assets on June 5,2012,and begin doing business on June 15,2012.They subscribe to shares of stock,file articles of incorporation for Jump,and become shareholders on July 23,2012.The S election must be filed no later than 2 1/2 months after:

Accepted Answer

A) May 21,2012. 
B) June 5,2012. 
C) June 15,2012. 
D) July 23,2012. 
E) December 31,2012. 
A) May 21,2012. 
B) June 5,2012. 
C) June 15,2012. 
D) July 23,2012. 
E) December 31,2012.

Question 6

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis.
or

Accepted Answer

The answer of Depletion in excess of basis in property...

Question 7

Which statement is incorrect?

Accepted Answer

A) S corporation status allows shareholders to realize tax benefits from corporate losses immediately. 
B) Shareholder-level tax on corporate profits can be eliminated by a step-up in the basis of the stock upon a shareholder's death. 
C) Fewer than 50% of all U.S.corporations make the S election. 
D) An S corporation resembles an LLC for Federal income tax purposes. 
E) None of the above. 
A) S corporation status allows shareholders to realize tax benefits from corporate losses immediately. 
B) Shareholder-level tax on corporate profits can be eliminated by a step-up in the basis of the stock upon a shareholder's death. 
C) Fewer than 50% of all U.S.corporations make the S election. 
D) An S corporation resembles an LLC for Federal income tax purposes. 
E) None of the above.

Question 8

During 2012,Oxen Corporation incurs the following transactions.   Oxen maintains a valid S election and does not distribute any assets (cash or property)to its sole shareholder,Megan.As a result,Megan must recognize:

Accepted Answer

A) Ordinary income of $103,000. 
B) Ordinary income of $103,000 and long-term capital gain of $5,000. 
C) Ordinary income of $103,000,long-term capital gain of $10,000,and $4,000 short-term capital loss. 
D) Ordinary income of $109,000. 
A) Ordinary income of $103,000. 
B) Ordinary income of $103,000 and long-term capital gain of $5,000. 
C) Ordinary income of $103,000,long-term capital gain of $10,000,and $4,000 short-term capital loss. 
D) Ordinary income of $109,000.

Question 9

The alternative minimum tax applies to an S corporation.

Accepted Answer

A) True 
 B)False

Question 10

Which,if any,of the following can be an eligible shareholder of an S corporation?

Accepted Answer

A) A child,age 10. 
B) A resident alien. 
C) A voting trust. 
D) The estate of a deceased shareholder. 
E) All of the above can own S stock. 
A) A child,age 10. 
B) A resident alien. 
C) A voting trust. 
D) The estate of a deceased shareholder. 
E) All of the above can own S stock.

Question 11

Any excess of S corporation losses or deductions over the shareholder's combined stock and debt basis is suspended until there is a subsequent stock or debt basis.

Accepted Answer

A) True 
 B)False

Question 12

S corporation status allows shareholders to realize tax benefits from corporate losses ____________________.

Accepted Answer

The answer of S corporation status allows shareholders to realize...

Question 13

Which type of distribution from an S corporation is taxed at the 0/15% Federal income tax rate?

Accepted Answer

A) AAA. 
B) Nonseparately computed income. 
C) OAA. 
D) AEP. 
E) None of the above. 
A) AAA. 
B) Nonseparately computed income. 
C) OAA. 
D) AEP. 
E) None of the above.

Question 14

Shareholders may deduct losses in excess of their basis in S corporation stock when a shareholder holds a loan basis of zero.

Accepted Answer

A) True 
 B)False

Question 15

Only 80% of the shareholders must consent to an S election.

Accepted Answer

A) True 
 B)False

Question 16

Meeting the definition of a small business corporation is a ____________________ requirement for maintaining the S status.

Accepted Answer

The answer of Meeting the definition of a small business...

Question 17

Consent to an S election must be in ____________________,and it must be generally filed by the election ____________________.

Accepted Answer

The answer of Consent to an S election must be...

Question 18

An S election made before becoming a corporation is valid only beginning with the first 12-month tax year.

Accepted Answer

A) True 
 B)False

Question 19

An S corporation can be a shareholder in another corporation.

Accepted Answer

A) True 
 B)False

Question 20

The Section 179 expense deduction is a Schedule K item.

Accepted Answer

A) True 
 B)False

Compare the distribution of property rules for an S corporation with the corresponding partnership rules.

You are a 60% owner of an S corporation.Calculate your ending stock basis,based upon these facts.

Tax-exempt income is a Schedule K item for an S corporation.

Individuals Adam and Bonnie form an S corporation,with Adam contributing cash of $100,000 for a 50% interest and Bonnie contributing appreciated ordinary income property with an adjusted basis of $20,000 and a fair market value of $100,000.

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis. or

Which statement is incorrect?

During 2012,Oxen Corporation incurs the following transactions. Oxen maintains a valid S election and does not distribute any assets (cash or property)to its sole shareholder,Megan.As a result,Megan must recognize:

The alternative minimum tax applies to an S corporation.

Which,if any,of the following can be an eligible shareholder of an S corporation?

Any excess of S corporation losses or deductions over the shareholder's combined stock and debt basis is suspended until there is a subsequent stock or debt basis.

S corporation status allows shareholders to realize tax benefits from corporate losses ____________________.

Which type of distribution from an S corporation is taxed at the 0/15% Federal income tax rate?

Shareholders may deduct losses in excess of their basis in S corporation stock when a shareholder holds a loan basis of zero.

Only 80% of the shareholders must consent to an S election.

Meeting the definition of a small business corporation is a ____________________ requirement for maintaining the S status.

Consent to an S election must be in ,and it must be generally filed by the election .

An S election made before becoming a corporation is valid only beginning with the first 12-month tax year.

An S corporation can be a shareholder in another corporation.

The Section 179 expense deduction is a Schedule K item.

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Exam 12: S: Corporations

Compare the distribution of property rules for an S corporation with the corresponding partnership rules.

You are a 60% owner of an S corporation.Calculate your ending stock basis,based upon these facts.

Tax-exempt income is a Schedule K item for an S corporation.

Individuals Adam and Bonnie form an S corporation,with Adam contributing cash of $100,000 for a 50% interest and Bonnie contributing appreciated ordinary income property with an adjusted basis of $20,000 and a fair market value of $100,000.

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis. or

Which statement is incorrect?

During 2012,Oxen Corporation incurs the following transactions. Oxen maintains a valid S election and does not distribute any assets (cash or property)to its sole shareholder,Megan.As a result,Megan must recognize:

The alternative minimum tax applies to an S corporation.

Which,if any,of the following can be an eligible shareholder of an S corporation?

Any excess of S corporation losses or deductions over the shareholder's combined stock and debt basis is suspended until there is a subsequent stock or debt basis.

S corporation status allows shareholders to realize tax benefits from corporate losses ____________________.

Which type of distribution from an S corporation is taxed at the 0/15% Federal income tax rate?

Shareholders may deduct losses in excess of their basis in S corporation stock when a shareholder holds a loan basis of zero.

Only 80% of the shareholders must consent to an S election.

Meeting the definition of a small business corporation is a ____________________ requirement for maintaining the S status.

Consent to an S election must be in ____________________,and it must be generally filed by the election ____________________.

An S election made before becoming a corporation is valid only beginning with the first 12-month tax year.

An S corporation can be a shareholder in another corporation.

The Section 179 expense deduction is a Schedule K item.

Understanding and Working With the Federal Tax Law

Corporations: Introduction and Operating Rules

Corporations: Special Situations

Corporations: Organization and Capital Structure

Corporations: Earnings Profits and Dividend Distributions

Corporations: Redemptions and Liquidations

Corporations: Reorganizations

Consolidated Tax Returns

Taxation of International Transactions

Partnerships: Formation, operation, and Basis

Partnerships: Distributions, transfer of Interests, and Terminations

Comparative Forms of Doing Business

Taxes on the Financial Statements

Exempt Entities

Multistate Corporate Taxation

Tax Practice and Ethics

The Federal Gift and Estate Taxes

Family Tax Planning

Income Taxation of Trusts and Estates

Filters

Consent to an S election must be in ,and it must be generally filed by the election .