Exam 15: Corporate Taxation

Keisha is a shareholder in a corporation. She received a distribution of property from the earnings and profits of the corporation. Keisha will report dividend income equal to the FMV of the property received.

(True/False)

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Question 41

Heather and Howie form HH Company. In exchange for 50% of the stock, Heather contributes cash of $7,000. For the remaining 50%, Howie contributes a truck with a FMV of $7,000 (basis of $10,000). Which of the following statements is correct?

(Multiple Choice)

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Question 42

Corporate tax returns are due 3.5 months after the end of their tax year, the same as individual income tax returns.

(True/False)

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Question 43

Benedict transfers land with a FMV of $900,000 to a newly-formed corporation in exchange for all of the stock. The land has a basis of $500,000 and debt of $300,000. The basis of the land, in the hands of the corporation is:

(Multiple Choice)

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Question 44

A corporation may elect to become a Subchapter S corporation only at the time it is initially formed.

(True/False)

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Question 45

Keisha owns 100% of DEF Company and has a basis of $10,000 in its stock. DEF has earnings and profits of $9,000 and distributes a cash dividend to Keisha of $12,000. Keisha has a:

(Multiple Choice)

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Question 46

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

(Multiple Choice)

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Question 47

A corporation must file Form 1120 2½ months after the end of its fiscal year.

(True/False)

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Question 48

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 basis in his stock is:

(Multiple Choice)

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Question 49

A C corporation has a fiscal year-end of April 30. It does not request an extension of time to file its income tax return. It must file its return no later than the 15^th day of:

(Multiple Choice)

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Question 50

When a corporation is formed, if the sole shareholder contributes property and receives, in return, stock plus property, the individual will report a taxable gain equal to the FMV of the property received.

(True/False)

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Question 51

A domestic corporation can receive a deduction for dividend income it receives from another domestic corporation.

(True/False)

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Question 52

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

(True/False)

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Question 53

A shareholder of a Subchapter S corporation is required to personally report his or her proportionate share of corporate net income.

(True/False)

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Question 54

Valarie owns 100% of Green Company. Green has earnings and profits of $10,000. The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie. She must report dividend income of:

(Multiple Choice)

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Question 55

When a corporation is formed, the transaction is tax-free.

(True/False)

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Question 56

Corporations are not subject to alternative minimum tax.

(True/False)

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Question 57

Which of the following statements is incorrect?

(Multiple Choice)

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Question 58

Felix transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all of the stock. The land has a basis of $300,000 and debt of $500,000. The basis of the land, in the hands of the corporation is:

(Multiple Choice)

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(82)

Question 59

Which of the following statements is incorrect?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 127

Keisha is a shareholder in a corporation. She received a distribution of property from the earnings and profits of the corporation. Keisha will report dividend income equal to the FMV of the property received.

Heather and Howie form HH Company. In exchange for 50% of the stock, Heather contributes cash of $7,000. For the remaining 50%, Howie contributes a truck with a FMV of $7,000 (basis of $10,000). Which of the following statements is correct?

Corporate tax returns are due 3.5 months after the end of their tax year, the same as individual income tax returns.

Benedict transfers land with a FMV of $900,000 to a newly-formed corporation in exchange for all of the stock. The land has a basis of $500,000 and debt of $300,000. The basis of the land, in the hands of the corporation is:

A corporation may elect to become a Subchapter S corporation only at the time it is initially formed.

Keisha owns 100% of DEF Company and has a basis of $10,000 in its stock. DEF has earnings and profits of $9,000 and distributes a cash dividend to Keisha of $12,000. Keisha has a:

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

A corporation must file Form 1120 2½ months after the end of its fiscal year.

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 basis in his stock is:

A C corporation has a fiscal year-end of April 30. It does not request an extension of time to file its income tax return. It must file its return no later than the 15^th day of:

When a corporation is formed, if the sole shareholder contributes property and receives, in return, stock plus property, the individual will report a taxable gain equal to the FMV of the property received.

A domestic corporation can receive a deduction for dividend income it receives from another domestic corporation.

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

A shareholder of a Subchapter S corporation is required to personally report his or her proportionate share of corporate net income.

Valarie owns 100% of Green Company. Green has earnings and profits of $10,000. The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie. She must report dividend income of:

When a corporation is formed, the transaction is tax-free.

Corporations are not subject to alternative minimum tax.

Which of the following statements is incorrect?

Felix transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all of the stock. The land has a basis of $300,000 and debt of $500,000. The basis of the land, in the hands of the corporation is:

Which of the following statements is incorrect?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

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

Keisha is a shareholder in a corporation. She received a distribution of property from the earnings and profits of the corporation. Keisha will report dividend income equal to the FMV of the property received.

Heather and Howie form HH Company. In exchange for 50% of the stock, Heather contributes cash of $7,000. For the remaining 50%, Howie contributes a truck with a FMV of $7,000 (basis of $10,000). Which of the following statements is correct?

Corporate tax returns are due 3.5 months after the end of their tax year, the same as individual income tax returns.

Benedict transfers land with a FMV of $900,000 to a newly-formed corporation in exchange for all of the stock. The land has a basis of $500,000 and debt of $300,000. The basis of the land, in the hands of the corporation is:

A corporation may elect to become a Subchapter S corporation only at the time it is initially formed.

Keisha owns 100% of DEF Company and has a basis of $10,000 in its stock. DEF has earnings and profits of $9,000 and distributes a cash dividend to Keisha of $12,000. Keisha has a:

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

A corporation must file Form 1120 2½ months after the end of its fiscal year.

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 basis in his stock is:

A C corporation has a fiscal year-end of April 30. It does not request an extension of time to file its income tax return. It must file its return no later than the 15th day of:

When a corporation is formed, if the sole shareholder contributes property and receives, in return, stock plus property, the individual will report a taxable gain equal to the FMV of the property received.

A domestic corporation can receive a deduction for dividend income it receives from another domestic corporation.

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

A shareholder of a Subchapter S corporation is required to personally report his or her proportionate share of corporate net income.

Valarie owns 100% of Green Company. Green has earnings and profits of $10,000. The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie. She must report dividend income of:

When a corporation is formed, the transaction is tax-free.

Corporations are not subject to alternative minimum tax.

Which of the following statements is incorrect?

Felix transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all of the stock. The land has a basis of $300,000 and debt of $500,000. The basis of the land, in the hands of the corporation is:

Which of the following statements is incorrect?

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

Capital Gains and Other Sales of Property

Rental Property, Royalties, Income From Flow-Through Entities

Tax Credits

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 C corporation has a fiscal year-end of April 30. It does not request an extension of time to file its income tax return. It must file its return no later than the 15^th day of: