Question 1

Estela,Inc. ,a calendar year S corporation,incurred the following items in 2012.
   Calculate Estela's nonseparately computed income.

Accepted Answer

The answer of Estela,Inc. ,a calendar year S corporation,incurred the...

Question 2

An S shareholder's stock basis is reduced by flow-through losses before accounting for distributions.

Accepted Answer

A) True 
 B)False

Question 3

The maximum number of shareholders in an S corporation is:

Accepted Answer

A) 75. 
B) 100. 
C) 200. 
D) Indeterminable. 
A) 75. 
B) 100. 
C) 200. 
D) Indeterminable.

Question 4

Bidden,Inc. ,a calendar year S corporation,incurred the following items.
   Calculate Bidden's nonseparately computed income.

Accepted Answer

The answer of Bidden,Inc. ,a calendar year S corporation,incurred the...

Question 5

Several individuals acquire assets on behalf of Skip Corporation on May 28,2012,purchased assets on June 3,2012,and began business on June 11,2012.They subscribe to shares of stock,file articles of incorporation for Skip,and become shareholders on June 21,2012.The S election must be filed no later than 2 1/2 months after:

Accepted Answer

A) May 28,2012. 
B) June 3,2012. 
C) June 11,2012. 
D) June 21,2012. 
E) December 31,2012. 
A) May 28,2012. 
B) June 3,2012. 
C) June 11,2012. 
D) June 21,2012. 
E) December 31,2012.

Question 6

Which statement is incorrect with respect to filing an S election?

Accepted Answer

A) Form 2553 must be filed. 
B) All shareholders must consent. 
C) The election may be filed in the previous year. 
D) An extension of time is available for filing Form 2553. 
E) None of the above statements is incorrect. 
A) Form 2553 must be filed. 
B) All shareholders must consent. 
C) The election may be filed in the previous year. 
D) An extension of time is available for filing Form 2553. 
E) None of the above statements is incorrect.

Question 7

An S shareholder's basis is increased by stock purchases and capital contributions.

Accepted Answer

A) True 
 B)False

Question 8

Since loss property receives a ____________________ in basis without any loss recognition,S corporation distributions of loss property should be ____________________.

Accepted Answer

The answer of Since loss property receives a ____________________ in...

Question 9

Passive investment income includes net capital gains from the sale of stocks and securities.

Accepted Answer

A) True 
 B)False

Question 10

Charitable contributions are subject to a 10% limitation at the S corporation level.

Accepted Answer

A) True 
 B)False

Question 11

Which tax provision does not apply to an S corporation?

Accepted Answer

A) DPAD. 
B) Section 1244 stock. 
C) Penalty for failure to file. 
D) 10% charitable contribution limitation. 
E) Estimated tax payments. 
A) DPAD. 
B) Section 1244 stock. 
C) Penalty for failure to file. 
D) 10% charitable contribution limitation. 
E) Estimated tax payments.

Question 12

Trent Huynh is a 45% owner of a calendar year S corporation during 2012.His beginning stock basis is $292,000,and the S corporation reports the following items.
   Calculate Huynh's stock basis at year-end.

Accepted Answer

The answer of Trent Huynh is a 45% owner of...

Question 13

Claude Bergeron sold 1,000 shares of Ditta,Inc. ,an S corporation,for $12,000.He had owned the stock for three years and had a stock basis of $111,000 in the shares.Claude is single,and he is the original owner of the § 1244 stock shares.Calculate the appropriate tax treatment.

Accepted Answer

A) No gain or loss. 
B) $50,000 LTCL;$49,000 ordinary deduction. 
C) $50,000 ordinary deduction;$49,000 LTCL. 
D) $99,000 long-term capital loss. 
A) No gain or loss. 
B) $50,000 LTCL;$49,000 ordinary deduction. 
C) $50,000 ordinary deduction;$49,000 LTCL. 
D) $99,000 long-term capital loss.

Question 14

Which item does not appear on Schedule K of Form 1120S?

Accepted Answer

A) Tax-exempt interest income. 
B) Section 1231 gain. 
C) Section 179 expense deduction. 
D) Depreciation recapture income. 
E) All of the above appear on Schedule K. 
A) Tax-exempt interest income. 
B) Section 1231 gain. 
C) Section 179 expense deduction. 
D) Depreciation recapture income. 
E) All of the above appear on Schedule K.

Question 15

During 2012,Dana Rippel,the sole shareholder of a calendar year S corporation,received a distribution of $16,000.On December 31,2011,her stock basis was $4,000.The corporation earned $11,000 ordinary income during the year.It has no accumulated E & P.Which statement is correct?

Accepted Answer

A) Rippel recognizes a $1,000 LTCG. 
B) Rippel's stock basis will be $2,000. 
C) Rippel's ordinary income is $15,000. 
D) Rippel's return of capital is $11,000. 
A) Rippel recognizes a $1,000 LTCG. 
B) Rippel's stock basis will be $2,000. 
C) Rippel's ordinary income is $15,000. 
D) Rippel's return of capital is $11,000.

Question 16

An S corporation does not recognize a loss when distributing assets that are worth less than their basis.

Accepted Answer

A) True 
 B)False

Question 17

An S shareholder's basis is not decreased by distributions treated as being paid from AAA.

Accepted Answer

A) True 
 B)False

Question 18

An S corporation's separately stated items are identical to those separately stated by partnerships.

Accepted Answer

A) True 
 B)False

Question 19

If a resident alien shareholder moves outside the U.S. ,the S election is terminated.

Accepted Answer

A) True 
 B)False

Question 20

Post-termination distributions by a former S corporation that are charged against ____________________ do not get tax-free treatment.

Accepted Answer

The answer of Post-termination distributions by a former S corporation...

Estela,Inc. ,a calendar year S corporation,incurred the following items in 2012. Calculate Estela's nonseparately computed income.

An S shareholder's stock basis is reduced by flow-through losses before accounting for distributions.

The maximum number of shareholders in an S corporation is:

Bidden,Inc. ,a calendar year S corporation,incurred the following items. Calculate Bidden's nonseparately computed income.

Which statement is incorrect with respect to filing an S election?

An S shareholder's basis is increased by stock purchases and capital contributions.

Since loss property receives a in basis without any loss recognition,S corporation distributions of loss property should be .

Passive investment income includes net capital gains from the sale of stocks and securities.

Charitable contributions are subject to a 10% limitation at the S corporation level.

Which tax provision does not apply to an S corporation?

Trent Huynh is a 45% owner of a calendar year S corporation during 2012.His beginning stock basis is $292,000,and the S corporation reports the following items. Calculate Huynh's stock basis at year-end.

Claude Bergeron sold 1,000 shares of Ditta,Inc. ,an S corporation,for $12,000.He had owned the stock for three years and had a stock basis of $111,000 in the shares.Claude is single,and he is the original owner of the § 1244 stock shares.Calculate the appropriate tax treatment.

Which item does not appear on Schedule K of Form 1120S?

During 2012,Dana Rippel,the sole shareholder of a calendar year S corporation,received a distribution of $16,000.On December 31,2011,her stock basis was $4,000.The corporation earned $11,000 ordinary income during the year.It has no accumulated E & P.Which statement is correct?

An S corporation does not recognize a loss when distributing assets that are worth less than their basis.

An S shareholder's basis is not decreased by distributions treated as being paid from AAA.

An S corporation's separately stated items are identical to those separately stated by partnerships.

If a resident alien shareholder moves outside the U.S. ,the S election is terminated.

Post-termination distributions by a former S corporation that are charged against ____________________ do not get tax-free treatment.

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

Estela,Inc. ,a calendar year S corporation,incurred the following items in 2012. Calculate Estela's nonseparately computed income.

An S shareholder's stock basis is reduced by flow-through losses before accounting for distributions.

The maximum number of shareholders in an S corporation is:

Bidden,Inc. ,a calendar year S corporation,incurred the following items. Calculate Bidden's nonseparately computed income.

Which statement is incorrect with respect to filing an S election?

An S shareholder's basis is increased by stock purchases and capital contributions.

Since loss property receives a ____________________ in basis without any loss recognition,S corporation distributions of loss property should be ____________________.

Passive investment income includes net capital gains from the sale of stocks and securities.

Charitable contributions are subject to a 10% limitation at the S corporation level.

Which tax provision does not apply to an S corporation?

Trent Huynh is a 45% owner of a calendar year S corporation during 2012.His beginning stock basis is $292,000,and the S corporation reports the following items. Calculate Huynh's stock basis at year-end.

Claude Bergeron sold 1,000 shares of Ditta,Inc. ,an S corporation,for $12,000.He had owned the stock for three years and had a stock basis of $111,000 in the shares.Claude is single,and he is the original owner of the § 1244 stock shares.Calculate the appropriate tax treatment.

Which item does not appear on Schedule K of Form 1120S?

During 2012,Dana Rippel,the sole shareholder of a calendar year S corporation,received a distribution of $16,000.On December 31,2011,her stock basis was $4,000.The corporation earned $11,000 ordinary income during the year.It has no accumulated E & P.Which statement is correct?

An S corporation does not recognize a loss when distributing assets that are worth less than their basis.

An S shareholder's basis is not decreased by distributions treated as being paid from AAA.

An S corporation's separately stated items are identical to those separately stated by partnerships.

If a resident alien shareholder moves outside the U.S. ,the S election is terminated.

Post-termination distributions by a former S corporation that are charged against ____________________ do not get tax-free treatment.

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

Since loss property receives a in basis without any loss recognition,S corporation distributions of loss property should be .