17. T/F. Fair market value of an asset is the amount a willing seller is ready to sell and a willing buyer is ready to pay.

18. T/ F. Corporations compute their taxable income the same way individuals do in computing their business profits or losses.

19. T/F. Some corporations are permitted to use the hybrid accounting method for filing their income tax returns.

20. T/F. C corporations can choose either to use a calendar year or a fiscal year for their tax returns.

21. T/F. Whereas C Corporations report their capital gains on Schedule D, self-employed business people report their capital gains on Schedule C.

22. ABC Corporation has the following items to be used for the computation of its Cost of Goods Sold : Beginning Inventory $120,000; Purchases $450,000; Purchases Discount and Returns $100,000; Labor Costs $250,000; Factory Overhead & Other Costs $ 800,000. The Ending Inventory $450,000. Its Cost of Goods Sold is: a. $1,520,000 b. $ 720,000 c. $1, 070,000 d. $1,120,000 e. None of the above.

23. T/F. Corporations report the sale of their capital assets on Schedule D or Form 1120.

24. Corporations treat: a. the excess of capital loss over capital gain as items to carry back 3 years and carry forward 5 years b. all capital loss carryover as short-term capital loss; c. all capital loss in first- created and first-used order; d. all of the above E. None of the above