Crossroads Corporation distributes $60,000 to its sole shareholder Harley. Crossroads has earnings and profits of $55,000 and Harley's basis in her stock is $20,000. After the distribution, Harley's basis is
$20,000
$60,000
$15,000
$5,000 ( is it 5000 or 20000 and could you please explain)
2:
Which of the following statements about a partnership is true?
Partners are taxed on their allocable share of income whether it is distributed or not.
A partnership is a taxpaying entity.
Partners are considered employees of the partnership.
Partners are taxed on distributions from a partnership. ( I think it is this one)
3:
Identify which of the following statements is false.
Records of committee hearings are helpful in determining Congressional intent.
When tax advisors speak of the tax law, they usually have in mind just the Internal Revenue Code.
Members from both the House and the Senate are on the Conference Committee.
All are false. ( I think this is true, Am I right? if not why?)
4
Which of the following statements about the alternative minimum tax depreciation rules is correct?
A 31.5-year recovery period is used when calculating the commercial real property depreciation deduction for alternative minimum taxable income purposes.
No depreciation adjustment is made when computing AMT for real property acquired after 1998.
The MACRS depreciation rules are used to calculate the depreciation deduction when calculating alternative minimum taxable income regardless of the date the property was placed in service.
The excess of the gain reported on the disposition of tangible personal property for income tax purposes over the gain reported for alternative minimum tax purposes is a positive adjustment to taxable income in arriving at alternative minimum taxable income.