1. What is the date of the statute of limitations if a taxpayer files a Form 1040X(Amended US Individual Income Tax Return) on March 15,2016after having filed his 2014 Form 1040( US Individual Income Tax Return) on February 3, 2015? ob a. April 15,2017 b. March 15.2019 c. March 15, 2018 d. February 3,2018 e. April 15,2018 2. New Corporation was organized and began active business on July 1, 2017. New incurred the following expenses in connection with opening the business: Legal fees for drafting the charter Legal fees for the transfer of stock Sate incorporation fees Printing costs for certificates Fees to directors for first two meetings Accounting fees to set up record keeping 0 Total $750 100 250 175 300 400 1975 Assuming New Corporation adopts a calendar year for tax purposes, what is the maximum amount of organizational expenses that may be deducted on the corporation's initial tax return? a $250 cd bow bolood bord oor b. $360 c. $400 d. $1,800 e. $1,975 3. The 100 shares of outstanding stock of Flash Corporation are owned by Barbara and Kelly, 70 and 30 shares respectively. Neither shareholder is related to the other. Each has a basis in her stock of $200 per share. During the year, Barbara sold 35 of her shares back to the corporation for $20,000. Assuming the corporation has substantial earnings and profits, Barbara's gross income will increase by : a. a dividend of $20,000 b. a capital gain of $13,000 c. a dividend of $13,000 d. a capital gain of $20,000 to 10 a 52% h 60% c. 62% 68% c. 82% 7. During the year.R.S.T and U formed a new corporation. R contributed appreciated property, S and T contributed cash and U contributed services. R, S, T and U each received 25% of the stock. Based on the facts: a. R must report taxable income Bla tungon b. R and U must report taxable income c. U must report taxable income d. None of the parties must report taxable income 0000215 31 8. As part of a reorganization, S, an individual shareholder, received the following in exchange for a share of stock with a $75 basis: One share of stock worth $50 and cash of $20 What is S's recognized gain or loss on this exchange? ' a. $25 loss b. $25 gain c. $5 loss d. No gain or loss is recognized 9. ABC Corporation's beginning balance of accumulated earnings and profits is a deficit of $100,000. It had current earnings and profits of $20,000. On March 1, the Corporation distributed $45,000 to its sole shareholder, R, who had a basis in his stock of $30,000. R will report: gain of $15,000 c. a dividend of $20,000 and retur a. no dividend income and a capital gain of $15,000 b. a dividend of $20,000 and return of capital of $25,000 c. a dividend of $20,000 and capital gain of $25,000 d. no dividend income and a capital gain of $25,000
