COMPLETE QUESTIONS ARE ALSO IN THE ATTACHED FILE

COMPLETE QUESTIONS ARE ALSO IN THE ATTACHED FILEClass: Introduction to Federal Income TaxTEXTBOOKFundamentals of TaxationAna Cruz, Miami Dade CollegeMichael Deschamps, MiraCosta CollegeFrederick Niswander, East Carolina Univ.Debra Prendergast, Prairie State CollegeDan Schisler, East Carolina Univ.Jinhee Trone, Santa Ana CollegeISBN: 0077862287Fundamentals of Taxation Chapter 15 Corporate Taxation QuestionsDiscuss (check midcourse.net for the help you need)ion Questions1. What are the requirements for a corporation to file a Form 1120A rather than a Form 1120?2. When must a corporate tax return be filed? Can a corporation receive an extension of time to file a return and, if so, what is the length of the extension?3. Without regard to any extensions of time to file, when is the income tax return due for a corporation with a May 31 year-end? An August 31 year-end? A February 28 year-end?4. Explain the 80% rule as it pertains to the formation of a corporation.5. In what instances could a gain be recorded associated with the purchase of stock upon formation of a corporation? Assume that the 80% test is met.16. What is Schedule M-1 and what is its purpose?17. What is Schedule L and what is its purpose?18. For purposes of the corporate Alternate Minimum Tax, explain the application of the AMT exemption amount and its phaseout.19. Under what circumstances can a parent-subsidiary group file a consolidated income tax return.20. Why might a parent-subsidiary group choose to file, or not to file, a consolidated income tax return?21. What are the two tests used to determine whether a group of corporations is a brother-sister group?22. What criteria must a corporation meet to appropriately elect Subchapter S status?23. A calendar year corporation properly files a Subchapter S election on January 10, 2007. On what date is the election effective? What if the election were filed on June 1, 2007?24. The Subchapter S status of a calendar year corporation is statutorily terminated on August 12, 2007. The Subchapter S status is deemed to be terminated on what date? What is the answer if the status were voluntarily revoked on that date?Multiple Choice25. Which of the following statements is correct?a. A calendar year corporation must file its tax return no later than April 15 unless it requests an extension.b. A corporation is a legal entity that is taxed on its taxable income.c. Corporations choose their tax year in their first year of operation and can elect to change it in their third year of operation.d. Large corporations without inventory can choose to use either the cash or accrual method of accounting.26. A corporation has a fiscal year-end of June. If the corporation does not receive an automatic extension of time to file its return, the return will be due on the 15th of:a. Augustb. Septemberc. Octoberd. November27. Two individuals form a corporation in which they own all of the stock. One individual contributes cash and the other contributes property encumbered by a mortgage. The new corporation assumes the mortgage. Which of the following statements is true with respect to the individual who contributes the property?a. Because the 80% test is met, no gain or loss will be recognized.b. Gain is recognized to the extent of relief of liability.c. Gain is recognized to the extent of relief of liability in excess of basis of property contributed.d. Gain is recognized to the extent the fair market value of the stock exceeds the basis of the property contributed.28. Tameka and Janelle form a corporation in which each will own 50% of the stock. Tameka contributes $50,000 in cash. Janelle contributes property with a basis of $30,000 and a FMV of $60,000. She also receives $10,000 of inventory from the corporation. Which of the following statements is true?a. Janelle will report a gain of $10,000.b. Janelle will report a gain of $30,000.c. Tameka will report a gain of $10,000.d. Neither Tameka nor Janelle will report a gain or loss as a result of these transactions.29. Svetlana forms a corporation in which she is the sole shareholder. She contributes a vehicle with a basis of $15,000 and a FMV of $8,000 in exchange for stock. She also contributes cash of $2,000. Svetlana will recognizea. A $5,000 lossb. A $7,000 lossc. A $10,000 lossd. neither a gain or loss.30. Annabelle forms a corporation in which she is the sole shareholder. She transfers $20,000 cash plus land with a $100,000 adjusted basis and a $160,000 FMV in exchange for all the stock of the corporation. The corporation assumes the $140,000 mortgage on the land. What is her basis in the stock and what is the gain she must report (if any)?a. No gain, stock basis is $120,000.b. Gain of $20,000, stock basis is $120,000.c. No gain, stock basis is $100,000.d. Gain of $20,000, stock basis is zero.36. Parker Company has earnings and profits of $8,000. It distributes capital gain property with a basis of $2,000 and FMV of $9,000 to Gertrude Parker, its sole shareholder. Gertrude has a basis of $10,000 in her stock. Which of the following statements is true with respect to this transaction?a. Gertrude will report dividend income of $2,000 and a capital gain of $7,000.b. Gertrude will report dividend income of $8,000.c. Gertrude will report dividend income of $8,000 and a capital gain of $1,000.d. Gertrude will report dividend income of $9,000.37. Which of the following is a negative adjustment on Schedule M-1?a. Federal income tax.c. Charitable contributions in excess of the 10% limit.c. Depreciation for books in excess of depreciation for taxesd. Tax-exempt interest.38. Which of the following is a positive adjustment on Schedule M-1?a. Excess of capital losses over capital gains.b. Excess of capital gains over capital losses.c. Charitable contribution carryover to the current year.d. Depreciation for taxes in excess of depreciation for books.39. Banana Company is widely held. It owns 85% of Strawberry Corporation. Two individuals hold the remaining 15%. Which of the following statements is true?a. Banana and Strawberry must file a consolidated tax return.b. Banana and Strawberry can elect to file a consolidated tax return.c. Banana and Strawberry can file a consolidated tax return if the other owners of Strawberry agree.d. Banana and Strawberry are brother-sister corporations.40. What missing dollar amounts are correct in the following sentence: The AMT exemption is $_____ for corporations with AMT income of $______ or less:a. $40,000; $150,000b. $40,000; $310,000c. $150,000; $310,000d. Cannot be answered with the information given.Problems45. When a corporation is formed, the transferor may report a gain in certain cases. What are the instances in which a gain would be reported? In these cases, what is the basis of the stock held by the transferor?46. An individual contributes property with a FMV in excess of basis to a corporation in exchange for stock. The property is subject to a mortgage. In each of the following instances, determine the basis of the stock in the hands of the shareholder and the basis of the property contributed in the hands of the corporation. Assume that the 80% rule is met.a. The property is subject to a mortgage that is less than basis and the corporation assumes the mortgage.b. The property is subject to a mortgage that is more than basis and the corporation assumes the mortgage.47. Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases.a. Contribution of property with a basis of $1,000 and a FMV of $1,400.b. Contribution of property with a basis of $3,000 and a FMV of $3,800. Stockholder also received $500 cash from the corporation as part of the stock transaction.c. Contribution of property with a basis of $8,200 and a FMV of $12,500. Stockholder also received property with a FMV of $1,700 from the corporation as part of the stock transaction.d. Contribution of a building with a FMV of $200,000, a mortgage (assumed by the corporation) of $100,000 and a basis of $125,000.e. Contribution of a building with a FMV of $1,700,000, a mortgage (assumed by the corporation) of $1,000,000 and a basis of $635,000.48. Using the information from Problem 47, determine the basis of the property contributed in the hands of the corporation in each instance. Assume that the 80% rule is met in all cases.49. Explain the operation of the dividends received deduction.50. Determine the amount of Dividend Received Deduction in each of the following instances. In all cases, the net income figure includes the full dividend.a. Dividend of $10,000 from a 45%-owned corporation. Net income before DRD of $50,000.b. Dividend of $19,000 from a 15%-owned corporation. Net income before DRD of $75,000.c. Dividend of $22,000 from a 60%-owned corporation. Net income before DRD of $11,000.d. Dividend of $8,000 from a 10%-owned corporation. Net income before DRD of $7,000.52. Determine the deductible charitable contribution in each of the following instances.a. Charitable contribution of $4,000 and taxable income before charitable contribution of $50,000.b. Charitable contribution of $8,000 and taxable income before charitable contribution of $50,000.c. Charitable contribution of $4,800 and taxable income before charitable contribution of $50,000. Taxable income includes a net operating loss carryforward of $5,000.d. Charitable contribution of $4,800 and taxable income before charitable contribution of $40,000. Taxable income includes a capital loss carryback of $5,000.53. Determine the amount of tax liability in each of the following cases.a. Taxable income of $45,200b. Taxable income of $450,200c. Taxable income of $4,500,200d. Taxable income of $14,500,200e. Taxable income of $45,000,20054. Determine taxable income in each of the following instances. Assume the corporation is a C corporation and that book income is before any income tax expense.a. Book income of $50,000 including capital gains of $2,000, a charitable contribution of $1,000, and travel and entertainment expenses of $3,000.b. Book income of $92,000 including capital losses of $3,000, a charitable contribution of $12,000, and travel and entertainment expenses of $3,000.c. Book income of $76,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $3,000 from a 10% owned domestic corporation. The corporation also has an $8,000 charitable contribution carryover.d. Book income of $129,000 including municipal bond interest of $2,000, a charitable contribution of $5,000, and dividends of $7,000 from a 70% owned domestic corporation. The corporation has a capital loss carryover of $6,000. The corporation had capital gains of $2,500 in the current year.55. Using the information from Problem 54, calculate the amount of tax liability in each instance.56. LMNO Corporation was formed in 2001. It reported net income (loss) over the 2001-2007 tax years, before accounting for any net operating losses, as follows:2001 $ (4,000)2002 $ 19,0002003 $ 23,0002004 $ (31,000)2005 $ 11,0002006 $ ( 8,000)2007 $ 3,000a. Determine annual taxable income after accounting for any net operating losses for 2001 to 2007 assuming the corporation does not waive the carryback period. Also determine any NOL carryforward to 2008.b. Determine annual taxable income after accounting for any net operating losses for 2001 to 2007 assuming the corporation waives the carryback period. Also determine any NOL carryforward to 2008.57. Determine the amount of (a) taxable dividend, (b) nontaxable distribution, and (c) capital gain, for the distributions made in each of the following cases.a. Corporate E&P of $10,000, shareholder stock basis of $12,000, distribution of $6,000.b. Corporate E&P of $7,500, shareholder stock basis of $7,000, distribution of $6,500.c. Corporate E&P of $16,000, shareholder stock basis of $5,000, distribution of $17,000.d. Corporate E&P of $14,000, shareholder stock basis of $11,000, distribution of $26,000.59. A corporation has regular taxable income of $370,000 and a regular tax liability of $125,800. It has positive tax preference items totaling $310,000. You have determined that the corporation is subject to Alternative Minimum Tax because it has average annual gross receipts of $9,000,000. Determine the amount of AMT owed by the corporation, if any.60. Refer to Problem 54. Determine the amount of taxable income and separately stated items in each case assuming the corporation were a Subchapter S corporation.61. Determine the amount of taxable income and separately stated items in each case assuming the corporation were a Subchapter S corporation. Ignore any carryforward items.a. Corporate financial statement net income of $52,000 including tax expense of $15,000, charitable contributions of $3,000, and depreciation expense of $37,000. Depreciation expense for tax purposes is $46,000.b. Corporate financial statement net income of $139,000 including tax expense of $68,000, charitable contributions of $28,000, depreciation expense of $103,000, and travel and entertainment expenses of $31,000. Depreciation expense for tax purposes is $145,000.c. Corporate financial statement net income of $226,000 including tax expense of $111,000, charitable contributions of $16,000, municipal bond interest of $19,000, travel and entertainment expenses of 41,000, capital gains of $6,000, and depreciation expense of $142,000. Depreciation expense for tax purposes is $131,000 and the corporation has a $7,000 charitable contribution carryforward for the current year.Category: essay

Welcome to Vision Essays! For over 10 years we have been helping students like you write, research, and generate ideas for their research papers, essays, term papers, dissertations, editing, resumes, and any other type of work your learning institution may assign you.

We can write any paper and have flexible payment plans with a minimum deadline of 6 Hrs.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total: