Exam 11: The Corporate Income Tax

What is the purpose of Schedule M-1?

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

XYZ Corporation has a December 31 year-end. ​ a.When is XYZ Corporation's tax return due? b.When does XYZ Corporation need to make its estimated tax payments? c.Assuming that XYZ Corporation owes $5,000 on the original tax return due date and it files for an extension and is granted an automatic extension to file tax returns,what is the extended tax return date and when should taxes be paid?

The Nandina Corporation was formed and began operations on July 1,2017,and incurred the following expenses during the year: If the corporation chooses not to expense but rather amortizes organizational costs over 180 months,what is the amount of its amortization expense for 2017?

During the current year,the Squamata Corporation,a regular C corporation,has $30,000 in ordinary income,a long-term capital loss of $20,000,and a short-term capital gain of $10,000. a.Calculate the Squamata Corporation's tax liability for the current year. b.​Explain the nature and amount of any carrybacks or carryforwards that the corporation is entitled to use.

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

On July 1,2017,Grey formed Arucaria Corporation.On that same date,Grey contributed $100,000 cash and transferred property with an adjusted basis of $60,000 to Arucaria in exchange for 3,000 shares of the corporation's common stock.The property transferred had a fair market value of $75,000 on the date of the transfer.Arucaria Corporation had no other shares of common stock outstanding on July 1,2017.As a result of this transaction,Grey's basis in the stock and Arucaria Corporation's basis in the property (other than the cash),respectively,are:

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.

Corporations are not allowed to amortize the costs of organizing the corporation.

The Lagerstroemia Corporation was formed on January 1,2017.Calculate the Lagerstroemia Corporation's taxable income or loss for 2017 given the following information:

To prevent triple taxation,a corporation is entitled to deduct 50 percent of the dividends received from other domestic corporations.

Which of the following is true with respect to capital gains and losses of a corporation?

During the current year,the Melaleuca Corporation received dividends from 50-percent-owned domestic corporations in the amount of $100,000. a.​Assuming that in addition to the dividend income the corporation has gross income from operations of $250,000 and deductible operating expenses of $210,000,calculate the amount of the corporation's dividends received deduction for the current year. b.​If,instead of $250,000 in gross income from operations,the corporation has $200,000 in gross income from operations and the same amount of dividends and expenses,calculate the amount of the corporation's dividends received deduction for the current year.

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.

A corporation may elect to take a credit for dividends paid in lieu of claiming a dividends received deduction.

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

A corporation owning 80 percent or more of the stock of another corporation has a dividends received deduction of 100 percent.

For the year ended June 30,2017,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 2017,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 2017,calculate the corporation's tax liability before any credits.