1) Village Corp , a June 30 fiscal year end corporation, began business in Year 1 Village made a valid S Corporation election on September 5, Year 8, with the unanimous consent of its shareholders The eligibility requirements for S status were met throughout Year 8 On what date did Village's S status become effective A July 1, Year 8 B September 5, Year 8 C January 1, Year 9 D July 1, Year 9 2 A taxpayer gives one share of stock in Harold Corp , an S corporation, to each of the following individuals a nephew, a son, an adopted stepdaughter, and a grandson After the distribution of stock, what is the number of additional shareholders, if any, counted towards the 100 shareholder limit A Zero B One C Two D Three 3 An S corporation has two shareholders who are also employees of the corporation Shareholder A owns 20 shares and shareholder B owns 90 shares The total number of shares issued and outstanding is 2,000 The corporation pays the health insurance premiums for all its employees and families The cost of family coverage is $5,300 The corporation pays for family coverage for both shareholders Because the company paid for health insurance, which of the following amounts would be reported to Shareholder A as his income A $0 B $2,650 C $4,240 D $5,300 4 Which of the following would cause the termination of S status for an S corporation that is already formed A A partnership becomes a shareholder of the S corporation B The S corporation becomes a partner in a partnership C The S corporation becomes a shareholder in a C corporation D A resident alien becomes a shareholder of the S corporation 5 A single individual is a 30 shareholder in an S corporation For the current year, the S corporation reports the following Ordinary business income $200,000 W 2 wages 65,000 Unadjusted basis of qualified property 25,000 The individual's taxable income before any deduction for qualified business income (QBI) is $100,000 Assume the current Section 199A statutory threshold is $160,700 What is the deductible QBI amount with respect to the S corporation A $5,063 B $9,750 C $12,000 D $19,500 6 Theron, a single individual, is a 50 partner in XYZ partnership which operates a qualified business For the current year, the partnership reports the following Qualified business income $400,000 W 2 wages $120,000 Unadjusted basis of qualified property $300,000 The Section 199A threshold amount for the year is $157,500 What is Theron's QBI deduction with respect to XYZ partnership A $40,000 B $30,000 C $21,500 D $31,500 7 Monie, an individual taxpayer, owns 50 of Monie Co, an S corporation At the beginning of 20X4, Monie's basis in Monie Co was $55,000 During 20X4, Monie Co realized ordinary loss in the amount of $45,000 and a short term capital loss of $15,000 Monie Co made total distributions of $70,000 to its shareholders during this taxable year What is Monie's resulting basis in Monie Co after accounting for the above items A $0 B $10,000 C $55,000 D $25,000

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1) Village Corp., a June 30 fiscal-year-end corporation, began business in Year 1. Village made a valid S Corporation election on September 5, Year 8,

1) Village Corp., a June 30 fiscal-year-end corporation, began business in Year 1. Village made a valid S Corporation election on September 5, Year 8, with the unanimous consent of its shareholders. The eligibility requirements for S status were met throughout Year 8. On what date did Village's S status become effective?

July 1, Year 8

September 5, Year 8

January 1, Year 9

July 1, Year 9

2. A taxpayer gives one share of stock in Harold Corp., an S corporation, to each of the following individuals: a nephew, a son, an adopted stepdaughter, and a grandson. After the distribution of stock, what is the number of additional shareholders, if any, counted towards the 100-shareholder limit?

Zero

One

Two

Three

3. An S corporation has two shareholders who are also employees of the corporation. Shareholder A owns 20 shares and shareholder B owns 90 shares. The total number of shares issued and outstanding is 2,000. The corporation pays the health insurance premiums for all its employees and families. The cost of family coverage is $5,300. The corporation pays for family coverage for both shareholders. Because the company paid for health insurance, which of the following amounts would be reported to Shareholder A as his income?

$2,650

$4,240

$5,300

4. Which of the following would cause the termination of S status for an S corporation that is already formed?

A partnership becomes a shareholder of the S corporation.

The S corporation becomes a partner in a partnership.

The S corporation becomes a shareholder in a C corporation.

A resident alien becomes a shareholder of the S corporation

5. A single individual is a 30% shareholder in an S corporation. For the current year, the S corporation reports the following:

Ordinary business income	$200,000
W-2 wages	65,000
Unadjusted basis of qualified property	25,000

The individual's taxable income before any deduction for qualified business income (QBI) is $100,000. Assume the current Section 199A statutory threshold is $160,700. What is the deductible QBI amount with respect to the S corporation?

$5,063

$9,750

$12,000

$19,500

6. Theron, a single individual, is a 50% partner in XYZ partnership which operates a qualified business. For the current year, the partnership reports the following:

Qualified business income - $400,000
W-2 wages - $120,000
Unadjusted basis of qualified property - $300,000

The Section 199A threshold amount for the year is $157,500. What is Theron's QBI deduction with respect to XYZ partnership?

$40,000

$30,000

$21,500

$31,500

7. Monie, an individual taxpayer, owns 50% of Monie & Co, an S corporation. At the beginning of 20X4, Monie's basis in Monie & Co was $55,000. During 20X4, Monie & Co realized ordinary loss in the amount of $45,000 and a short-term capital loss of $15,000. Monie & Co made total distributions of $70,000 to its shareholders during this taxable year. What is Monie's resulting basis in Monie & Co after accounting for the above items?

$10,000

$55,000

$25,000