Question 1

Which of the following items is subtracted from book income to arrive at taxable income?

Accepted Answer

A) Interest received on tax-exempt bonds. 
B) The excess of capital losses over capital gains. 
C) Charitable contributions in excess of the 10% limit. 
D) 50% of travel and entertainment expenses. 
A) Interest received on tax-exempt bonds. 
B) The excess of capital losses over capital gains. 
C) Charitable contributions in excess of the 10% limit. 
D) 50% of travel and entertainment expenses.

Question 2

What is the AMT exemption amount for a corporation with AMT income of $200,000?

Accepted Answer

A) $40,000. 
B) $0. 
C) $27,500. 
D) $12,500. 
A) $40,000. 
B) $0. 
C) $27,500. 
D) $12,500.

Question 3

Andre formed a corporation and owns all of the stock.He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation.Andre's taxable gain is:

Accepted Answer

A) $0. 
B) $10,000. 
C) $1,000. 
D) $3,000. 
A) $0. 
B) $10,000. 
C) $1,000. 
D) $3,000.

Question 4

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

Accepted Answer

A) Taxable income of $31,000,carryforward of zero. 
B) Taxable income of $32,000,carryforward of zero. 
C) Taxable income of $35,000,carryforward of $4,000. 
D) Taxable income of $31,500,carryforward of $500. 
A) Taxable income of $31,000,carryforward of zero. 
B) Taxable income of $32,000,carryforward of zero. 
C) Taxable income of $35,000,carryforward of $4,000. 
D) Taxable income of $31,500,carryforward of $500.

Question 5

On Schedule M-1,federal income tax must be added back to taxable income.

Accepted Answer

A) True 
 B)False

Question 6

A corporation has a fiscal year-end of September 30.If the corporation receives an automatic extension to file its return,the return will be due on the 15th day of:

Accepted Answer

A) July. 
B) June. 
C) May. 
D) August. 
A) July. 
B) June. 
C) May. 
D) August.

Question 7

Quince Company has book income of $120,000 properly determined in accordance with financial accounting principles.The following information is also available:
• The company received a $10,000 dividend from a large publicly-traded domestic corporation.
• Income tax expense on the financial statements was $30,000.
• Depreciation expense on the financial statements is $25,000 less than depreciation expense determined using tax laws.
• The company received life insurance proceeds of $15,000.
• Charitable contributions of $20,000 were made.
Determine the taxable income of Quince Company.

Accepted Answer

First determine the amount of taxable in

Which of the following items is subtracted from book income to arrive at taxable income?

What is the AMT exemption amount for a corporation with AMT income of $200,000?

Andre formed a corporation and owns all of the stock.He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation.Andre's taxable gain is:

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

On Schedule M-1,federal income tax must be added back to taxable income.

A corporation has a fiscal year-end of September 30.If the corporation receives an automatic extension to file its return,the return will be due on the 15^thday of:

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 Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

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

Which of the following items is subtracted from book income to arrive at taxable income?

What is the AMT exemption amount for a corporation with AMT income of $200,000?

Andre formed a corporation and owns all of the stock.He contributed property with a FMV of $10,000 and a basis of $7,000 and he received $1,000 cash from the corporation.Andre's taxable gain is:

Gold Corporation sells baseball bats and reported net income of $35,000 before charitable contributions.It contributed 100 bats to a local high school.Each bat has a FMV of $40 and a basis of $30.Determine Gold's taxable income and charitable contribution carryforward.

On Schedule M-1,federal income tax must be added back to taxable income.

A corporation has a fiscal year-end of September 30.If the corporation receives an automatic extension to file its return,the return will be due on the 15th day of:

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 Line 12 of Form 1040 and Schedule C

Capital Gains and Other Sales of Property Schedule D and Form 4797

Rental Property, royalties, and Income From Flow-Through Entities Line 17, form 1040, and Schedule E

Tax Credits Form 1040, lines 46 Through 54 and Lines 66a Through 73

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

A corporation has a fiscal year-end of September 30.If the corporation receives an automatic extension to file its return,the return will be due on the 15^thday of: