1. Which of the following isfalsein regards to filing requirements? Select one:

a. Corporations file their tax returns on Form 1120.b. An automatic 6-month extension can be obtained by a corporation by filing Form 7004.c. Filing Form 7004 provides a 6-month extension for paying the corporations tax due. A corporation can wait to pay its tax liability without penalty when the return is filed.d. None of the above is false.

Question2

Which of the following corporations is allowed to make an S corporation election? Select one:

a. A U.S. owned and operated corporation with two individual owners.b. A U.S. corporation owned by a Brazilian corporation.c. A U.S. owned and operated corporation with 7,000 separate shareholders.d. None of the above could be an S corporation.

Question3

For the year ended December 31, 2015, Prunus, Inc., reported net income before federal income tax expense of $800,000 per the corporation's books. This figure included the following items:

Interest income on tax-exempt municipal securities	$30,000
Loss on sale of land acquired in 1985 as an investment	$40,000
Interest expense on loan to purchase tax-exempt municipal securities	$10,000

What is the taxable income of Prunus, Inc. for 2015?

Select one:

a. $800,000b. $820,000c. $830,000d. $870,000e. None of the above

Question 4

Ficus, Inc. began business on March 1, 2015, 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 2015 is: Select one:

a. $4.44b. $44.44c. $53.28d. $800.00e. None of the above

Question5

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ABC Company owns 40 percent of JMT Company and 95 percent of DEM Company. JMT pays a $80,000 dividend to ABC and DEM pays a $40,000 dividend to ABC in the current year. Assuming that ABC has $1,000,000 of taxable income, calculate ABCs dividends received deduction for the current year. Select one:

a. $96,000b. $104,000c. $120,000d. $140,000e. None of the above is correct

Question6

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The Bay Fig Corporation has $350,000 of taxable income from operations for the current year, and dividends of $50,000 received from 10 percent-owned domestic corporations. How much is the Bay Fig Corporation's dividends received deduction for the current year? Select one:

a. $35,000b. $40,000c. $70,000d. $80,000e. None of the above

Question7

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For the current year, the Beech Corporation has net income on its books of $60,000, including the following items:

Net capital losses	$15,000
Federal income tax expense	$25,000

Federal tax depreciation exceeds the depreciation deducted on the books by $5,000. What is the corporation's taxable income?

Select one:

a. $66,000b. $90,000c. $95,000d. $103,000e. None of the above

Question8

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Which of the following items isnotgenerally a schedule M-1 adjustment? Select one:

a. Net capital lossesb. Interest on tax-exempt bondsc. Federal income tax expensed. Interest expense on a loan to purchase municipal bondse. All of the above are M-1 adjustments

Question9

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Which of the following statements is true of corporations? Select one:

a. Income of all corporations is taxed in the same way that income of partnerships is taxed.b. A corporations charitable contribution deduction is limited to 25 percent of the corporation's taxable income.c. Capital losses of a corporation may be deducted from ordinary income, subject to an annual limitation.d. If a corporation has a long-term capital loss that is carried back, it is treated as a short-term capital loss.e. A corporation may deduct organizational expenditures as they are incurred.

Question10

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For 2015, what is the maximum tax rate for personal service corporations? Select one:

a. 25 percentb. 28 percentc. 34 percentd. 35 percente. None of the above