Question 1

What is the purpose of Schedule M-1?

Accepted Answer

Schedule M-1 is included in corporate ta

Question 2

For 2014, the Beech Corporation has net income on its books of $60,000, including the following items: Federal tax depreciation exceeds the depreciation deducted on the books by $5,000. What is the corporation's taxable income?

Accepted Answer

A) $66,000 
B) $85,000 
C) $90,000 
D) $103,000 
E) None of the above 
A) $66,000 
B) $85,000 
C) $90,000 
D) $103,000 
E) None of the above

Question 3

A corporation may carry forward capital losses for an indefinite period.

Accepted Answer

A) True 
 B)False

Question 4

The Cat Corporation had $20,000 of book income in the current year. The following is a list of differences between federal and book income and expenses:
Based on the above information, calculate the Cat Corporation's federal taxable income for the year. Show your calculations.

Accepted Answer

$29,100 = $20,000 +

Question 5

Which of the following items is not generally a schedule M-1 adjustment?

Accepted Answer

A) Net capital losses 
B) Interest on tax-exempt bonds 
C) Federal income tax expense 
D) Interest expense on a loan to purchase municipal bonds 
E) All of the above are M-1 adjustments 
A) Net capital losses 
B) Interest on tax-exempt bonds 
C) Federal income tax expense 
D) Interest expense on a loan to purchase municipal bonds 
E) All of the above are M-1 adjustments

Question 6

Corporations can elect to deduct up to $5,000 of organizational costs in the year they begin business, assuming their total organizational expenses do not exceed $50,000.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a requirement for qualification as an S corporation?

Accepted Answer

A) The corporation must be a domestic corporation. 
B) The corporation must have 25 or fewer shareholders. 
C) The corporation must have only one class of stock outstanding. 
D) The shareholders of the corporation must not be nonresident aliens. 
E) None of the above. 
A) The corporation must be a domestic corporation. 
B) The corporation must have 25 or fewer shareholders. 
C) The corporation must have only one class of stock outstanding. 
D) The shareholders of the corporation must not be nonresident aliens. 
E) None of the above.

Question 8

Capital losses of a corporation must be used to offset capital gains and net capital losses may not be deducted from the ordinary income of a corporation.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of corporations?

Accepted Answer

A) Income of all corporations is taxed in the same way that income of partnerships is taxed. 
B) A corporation's charitable contribution deduction is limited to 25 percent of the corporation's taxable income. 
C) Capital losses of a corporation may be deducted from ordinary income, subject to an annual limitation. 
D) If a corporation has a long-term capital loss that is carried back, it is treated as a short-term capital loss. 
E) A corporation may deduct organizational expenditures as they are incurred. 
A) Income of all corporations is taxed in the same way that income of partnerships is taxed. 
B) A corporation's charitable contribution deduction is limited to 25 percent of the corporation's taxable income. 
C) Capital losses of a corporation may be deducted from ordinary income, subject to an annual limitation. 
D) If a corporation has a long-term capital loss that is carried back, it is treated as a short-term capital loss. 
E) A corporation may deduct organizational expenditures as they are incurred.

Question 10

For the year ended June 30, 2014, the Rosaceae Corporation, a regular C corporation, has a long-term capital loss of $25,000.
a.​Assuming that in addition to the capital loss, the corporation has taxable income, before capital gains and losses, of $25,000 for 2014, calculate the corporation's tax liability before any credits.
b.​​Assuming that in addition to the long-term capital loss of $25,000 the corporation has taxable income, before capital gains and losses, of $90,000 and a short-term capital gain of $10,000 for 2014, calculate the corporation's tax liability before any credits.

Accepted Answer

The answer of For the year ended June 30, 2014,...

Question 11

Schedule M-1 on Form 1120 shows the reconciliation of a corporation's tax liability to the tax expense on the corporation's books.

Accepted Answer

A) True 
 B)False

Question 12

The Sapote Corporation is a manufacturing corporation. The corporation has accumulated earnings of $450,000 and the corporation cannot establish a reasonable business need for any of that amount. What is the amount of the accumulated earnings tax, if any, that will be imposed on the corporation?

Accepted Answer

A) $45,000 
B) $30,000 
C) $50,000 
D) $76,000 
E) None of the above 
A) $45,000 
B) $30,000 
C) $50,000 
D) $76,000 
E) None of the above

Question 13

Which of the following is not an adjustment or tax preference item for the corporate alternative minimum tax?

Accepted Answer

A) Certain tax-exempt bond intererest 
B) Organization cost amortization 
C) Accelerated depreciation on personal property 
D) Percentage depletion in excess of the property's adjusted basis 
A) Certain tax-exempt bond intererest 
B) Organization cost amortization 
C) Accelerated depreciation on personal property 
D) Percentage depletion in excess of the property's adjusted basis

Question 14

Brokers' fees incurred in the issuance of a corporation's stock are considered organizational expenditures.

Accepted Answer

A) True 
 B)False

Question 15

An S corporation files a Form 1120S.

Accepted Answer

A) True 
 B)False

Question 16

A regular corporation with excess charitable contributions may carry the excess forward to the 5 succeeding tax years.

Accepted Answer

A) True 
 B)False

Question 17

The original due date for a tax return of a corporation with a calendar tax year-end falls before the original due date of a return for an individual taxpayer with the same tax year.

Accepted Answer

A) True 
 B)False

Question 18

The F. Repens Corporation has taxable income of $250,000 for 2014, including dividends of $50,000 received from 30 percent-owned domestic corporations. How much is the F. Repens Corporation's dividends received deduction for 2014?

Accepted Answer

A) $0 
B) $40,000 
C) $50,000 
D) $170,000 
E) None of the above 
A) $0 
B) $40,000 
C) $50,000 
D) $170,000 
E) None of the above

What is the purpose of Schedule M-1?

For 2014, the Beech Corporation has net income on its books of $60,000, including the following items: Federal tax depreciation exceeds the depreciation deducted on the books by $5,000. What is the corporation's taxable income?

A corporation may carry forward capital losses for an indefinite period.

The Cat Corporation had $20,000 of book income in the current year. The following is a list of differences between federal and book income and expenses: Based on the above information, calculate the Cat Corporation's federal taxable income for the year. Show your calculations.

Which of the following items is not generally a schedule M-1 adjustment?

Corporations can elect to deduct up to $5,000 of organizational costs in the year they begin business, assuming their total organizational expenses do not exceed $50,000.

Which of the following is not a requirement for qualification as an S corporation?

Capital losses of a corporation must be used to offset capital gains and net capital losses may not be deducted from the ordinary income of a corporation.

Which of the following statements is true of corporations?

Schedule M-1 on Form 1120 shows the reconciliation of a corporation's tax liability to the tax expense on the corporation's books.

The Sapote Corporation is a manufacturing corporation. The corporation has accumulated earnings of $450,000 and the corporation cannot establish a reasonable business need for any of that amount. What is the amount of the accumulated earnings tax, if any, that will be imposed on the corporation?

Which of the following is not an adjustment or tax preference item for the corporate alternative minimum tax?

Brokers' fees incurred in the issuance of a corporation's stock are considered organizational expenditures.

An S corporation files a Form 1120S.

A regular corporation with excess charitable contributions may carry the excess forward to the 5 succeeding tax years.

The original due date for a tax return of a corporation with a calendar tax year-end falls before the original due date of a return for an individual taxpayer with the same tax year.

The F. Repens Corporation has taxable income of $250,000 for 2014, including dividends of $50,000 received from 30 percent-owned domestic corporations. How much is the F. Repens Corporation's dividends received deduction for 2014?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

Tax Administration and Tax Planning

Filters

Exam 11: The Corporate Income Tax

What is the purpose of Schedule M-1?

For 2014, the Beech Corporation has net income on its books of $60,000, including the following items: Federal tax depreciation exceeds the depreciation deducted on the books by $5,000. What is the corporation's taxable income?

A corporation may carry forward capital losses for an indefinite period.

The Cat Corporation had $20,000 of book income in the current year. The following is a list of differences between federal and book income and expenses: Based on the above information, calculate the Cat Corporation's federal taxable income for the year. Show your calculations.

Which of the following items is not generally a schedule M-1 adjustment?

Corporations can elect to deduct up to $5,000 of organizational costs in the year they begin business, assuming their total organizational expenses do not exceed $50,000.

Which of the following is not a requirement for qualification as an S corporation?

Capital losses of a corporation must be used to offset capital gains and net capital losses may not be deducted from the ordinary income of a corporation.

Which of the following statements is true of corporations?

Schedule M-1 on Form 1120 shows the reconciliation of a corporation's tax liability to the tax expense on the corporation's books.

The Sapote Corporation is a manufacturing corporation. The corporation has accumulated earnings of $450,000 and the corporation cannot establish a reasonable business need for any of that amount. What is the amount of the accumulated earnings tax, if any, that will be imposed on the corporation?

Which of the following is not an adjustment or tax preference item for the corporate alternative minimum tax?

Brokers' fees incurred in the issuance of a corporation's stock are considered organizational expenditures.

An S corporation files a Form 1120S.

A regular corporation with excess charitable contributions may carry the excess forward to the 5 succeeding tax years.

The original due date for a tax return of a corporation with a calendar tax year-end falls before the original due date of a return for an individual taxpayer with the same tax year.

The F. Repens Corporation has taxable income of $250,000 for 2014, including dividends of $50,000 received from 30 percent-owned domestic corporations. How much is the F. Repens Corporation's dividends received deduction for 2014?

The Individual Income Tax Return

Gross Income and Exclusions

Business Income and Expenses, Part I

Business Income and Expenses, Part II

Itemized Deductions and Other Incentives

Credits and Special Taxes

Accounting Periods and Methods and Depreciation

Capital Gains and Losses

Withholding, Estimated Payments, and Payroll Taxes

Partnership Taxation

Tax Administration and Tax Planning

Filters