1- Ficus, Inc. began business on March 1, 2016, and elected to file its income tax return on a calendar-year basis. The corporation incurred $800 in organizational expenditures. Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months, the maximum allowable deduction for amortization of organizational expenditures in 2016 is:a.$800.00

b.$44.44

c.$53.28

d.$4.44

e.None of these choices are correct

2- The F. Repens Corporation has taxable income of $250,000 for the current year, including dividends of $60,000 received from 30 percent-owned domestic corporations. How much is the F. Repens Corporation's dividends received deduction for the current year?a.$170,000

b.$48,000

c.$0

d.$40,000

e.None of these choices are correct.

3- Choose the correct statement:a.The corporate alternative minimum tax applies to all corporations including S corporations.

b.The alternative minimum tax is imposed at 26 percent on the alternative minimum tax base up to $150,000 and 28 percent on the AMT base that is greater than $150,000.

c.The exemption amount is phased out at a rate of $1.00 for every $1.00 by which the corporation's alternative minimum taxable base exceeds $210,000.

d.The alternative minimum tax base is equal to the corporation's regular taxable income increased or decreased for certain adjustments, increased by tax preference items, and decreased by the exemption amount.

4- Which of the following is not a requirement for qualification as an S corporation?a.The shareholders of the corporation must not be nonresident aliens.

b.The corporation must have only one class of stock outstanding.

c.The corporation must have 25 or fewer shareholders.

d.The corporation must be a domestic corporation.

e.None of these choices are correct.

5- Which of the following statements is true of corporations?a.A corporation's charitable contribution deduction is limited to 25 percent of the corporation's taxable income.

b.Capital losses of a corporation may be deducted from ordinary income, subject to an annual limitation.

c.Income of all corporations is taxed in the same way that income of partnerships is taxed.

d.A corporation may deduct organizational expenditures as they are incurred.

e.If a corporation has a long-term capital loss that is carried back, it is treated as a short-term capital loss.

6- Which of the following items is not generally a schedule M-1 adjustment?a.Interest on tax-exempt bonds

b.Net capital losses

c.Federal income tax expense

d.Interest expense on a loan to purchase municipal bonds

e.All of these choices are M-1 adjustments.