Question 1

Which of the following does NOT create a temporary book-tax difference?

Accepted Answer

A)  Deferred compensation. 
B)  Bad-debt expense. 
C)  Depreciation expense. 
D)  Dividends received deduction. 
A)  Deferred compensation. 
B)  Bad-debt expense. 
C)  Depreciation expense. 
D)  Dividends received deduction.

Question 2

Netgate Corporation's gross regular tax liability for 2018 was $189,000. What was its taxable income?

Accepted Answer

$900,000.

Question 3

What is the unextended due date of the tax return of a calendar-year C corporation for 2018?

Accepted Answer

A)  February 15. 
B)  March 15. 
C)  April 15. 
D)  October 15. 
A)  February 15. 
B)  March 15. 
C)  April 15. 
D)  October 15.

Question 4

In 2018, AutoUSA Inc. received $4,600,000 of book income, including $20,000 of interest income from tax-exempt bonds. AutoUSA reported $3,600,000 of regular business expenses. If it made $210,000 of estimated tax payments (prepayments) throughout the tax year, what is its tax due or tax refund when it files its return?

Accepted Answer

The answer of In 2018, AutoUSA Inc. received $4,600,000 of...

Question 5

Which of the following statements regarding capital gains and losses is false?

Accepted Answer

A)  In terms of tax treatment, corporations generally prefer capital gains to ordinary income. 
B)  Like individuals, corporations can deduct $3,000 of net capital losses against ordinary income in a given year. 
C)  C corporations can carry back net capital losses three years and they can carry them forward for five years. 
D)  Corporations must apply capital loss carrybacks and carryovers in a particular order. 
A)  In terms of tax treatment, corporations generally prefer capital gains to ordinary income. 
B)  Like individuals, corporations can deduct $3,000 of net capital losses against ordinary income in a given year. 
C)  C corporations can carry back net capital losses three years and they can carry them forward for five years. 
D)  Corporations must apply capital loss carrybacks and carryovers in a particular order.

Question 6

BTW Corporation has taxable income in the current year that can be offset with an NOL carryover from a previous year. What is the nature of the book-tax difference created by the net operating loss carryover deduction in the current year?

Accepted Answer

A)  Permanent; favorable. 
B)  Permanent; unfavorable. 
C)  Temporary; favorable. 
D)  Temporary; unfavorable. 
A)  Permanent; favorable. 
B)  Permanent; unfavorable. 
C)  Temporary; favorable. 
D)  Temporary; unfavorable.

Question 7

Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($6,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

Accepted Answer

A)  $0. 
B)  $2,000. 
C)  $4,000. 
D)  $5,000. 
E)  None of the choices is correct. 
A)  $0. 
B)  $2,000. 
C)  $4,000. 
D)  $5,000. 
E)  None of the choices is correct.

Question 8

In 2018, Datasoft Inc. received $350,000 in dividends from CSLabs Inc. Datasoft's taxable income before the dividends received deduction and $20,000 charitable contribution deduction is $300,000. What is Datasoft's DRD assuming it owns 15% of the CSLabs Inc. stock?

Accepted Answer

$140,000,

Question 9

XPO Corporation has a minimum tax credit of $50,000 from 2017. XPO's tax liability before any MTC carryover is $30,000. What is XPO's minimum tax credit carryover to 2019, if any?

Accepted Answer

A)  $50,000. 
B)  $20,000. 
C)  $10,000. 
D)  $0. 
A)  $50,000. 
B)  $20,000. 
C)  $10,000. 
D)  $0.

Which of the following does NOT create a temporary book-tax difference?

Netgate Corporation's gross regular tax liability for 2018 was $189,000. What was its taxable income?

What is the unextended due date of the tax return of a calendar-year C corporation for 2018?

Which of the following statements regarding capital gains and losses is false?

BTW Corporation has taxable income in the current year that can be offset with an NOL carryover from a previous year. What is the nature of the book-tax difference created by the net operating loss carryover deduction in the current year?

Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($6,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

In 2018, Datasoft Inc. received $350,000 in dividends from CSLabs Inc. Datasoft's taxable income before the dividends received deduction and $20,000 charitable contribution deduction is $300,000. What is Datasoft's DRD assuming it owns 15% of the CSLabs Inc. stock?

XPO Corporation has a minimum tax credit of $50,000 from 2017. XPO's tax liability before any MTC carryover is $30,000. What is XPO's minimum tax credit carryover to 2019, if any?

An Introduction to Tax

Tax Compliance, the IRS, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters

Exam 16: Corporate Operations

Which of the following does NOT create a temporary book-tax difference?

Netgate Corporation's gross regular tax liability for 2018 was $189,000. What was its taxable income?

What is the unextended due date of the tax return of a calendar-year C corporation for 2018?

Which of the following statements regarding capital gains and losses is false?

BTW Corporation has taxable income in the current year that can be offset with an NOL carryover from a previous year. What is the nature of the book-tax difference created by the net operating loss carryover deduction in the current year?

Jazz Corporation owns 10% of the Williams Corp. stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s taxable income (loss) before the dividend was ($6,000). What is the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp.?

In 2018, Datasoft Inc. received $350,000 in dividends from CSLabs Inc. Datasoft's taxable income before the dividends received deduction and $20,000 charitable contribution deduction is $300,000. What is Datasoft's DRD assuming it owns 15% of the CSLabs Inc. stock?

XPO Corporation has a minimum tax credit of $50,000 from 2017. XPO's tax liability before any MTC carryover is $30,000. What is XPO's minimum tax credit carryover to 2019, if any?

An Introduction to Tax

Tax Compliance, the IRS, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Dependents, and Filing Status

Gross Income and Exclusions

Individual Deductions

Investments

Individual Income Tax Computation and Tax Credits

Business Income, Deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Compensation

Retirement Savings and Deferred Compensation

Tax Consequences of Home Ownership

Entities Overview

Accounting for Income Taxes

Corporate Taxation: Nonliquidating Distributions

Corporate Formation, Reorganization, and Liquidation

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

State and Local Taxes

The Us Taxation of Multinational Transactions

Transfer Taxes and Wealth Planning

Filters