12.

For Corporation P to file a consolidated tax return with Corporation S, P must own what percentage of S's voting stock?

Multiple Choice

• 100 percent.

• 80 percent.

• More than 50 percent.

• 50 percent or more.

20.

Coop Incorporated owns 10 percent of Chicken Incorporated. At the end of the year, Coop has $100,000 in invested Chicken stock and Coops Chicken stock is worth $115,000. Both Coop and Chicken are corporations. Chicken pays Coop a dividend of $10,000 in the current year. Chicken also reports financial accounting earnings of $20,000 for that year. Assume Coop follows the general rule of accounting for investment in Chicken. What is the amount and nature of the booktax difference to Coop associated with the dividend distribution (ignoring the dividends received deduction)?

Multiple Choice

• $1000 unfavorable.

• $10,000 favorable.

• $15,000 unfavorable.

• $15,000 favorable.

• None of the choices is correct.

14. Remsco has taxable income of $60,000 and a charitable contribution limit modified taxable income of $72,000. Its charitable contributions for the year were $7,500. What is Remsco's current-year charitable contribution deduction and contribution carryover (assuming Remsco does not elect to use the 25% of modified taxable income to determine its charitable contribution deduction)?

Multiple Choice

• $6,000 current-year deduction; $1,500 carryover.

• $7,500 current-year deduction; $0 carryover.

• $1,200 current-year deduction; $6,300 carryover.

• $7,200 current-year deduction; $300 carryover.