19. Whitfield, Inc., a calendar-year corporation incorporated in January 2011, had a net operating loss (NOL) of $75,000 in 2015. For each of the years 2011-2014, Whitfield reported taxable income (loss) before NOL deduction as follows: When filing its tax return for 2015, Whitfield did not elect to give up the carryback of its loss for 2015. Whitfields taxable income before net operating loss deduction for 2016 was $80,000. Whitfield should report a NOL deduction on its tax return for 2016 of

2011 $15,000

2012 ($20,000)

2013 $10,000

2014 $30,000

a. $55,000

b. $40,000

c. $35,000

d. $30,000

e. $25,000

20. Entities no longer have to classify deferred tax assets and liabilities as current or long-term on the balance sheet.

a. True

b. False

21. Softy Corp. is a C corporation that was formed in 2010. At the beginning of 2016, Softy had accumulated earnings and profits of $100,000. The company makes a $5,000 distribution to its 100% shareholder in the first month of each quarter (four distributions throughout the year.) At the end of the year, Softy had $150,000 of gross income and $140,000 of expenses from ordinary business operations. Softy had also received $5,000 in fully tax-exempt interest from state bonds. What part of the second quarter distribution is treated as a distribution of accumulated earnings and profits?

a. None, if net income as of the second quarter exceed both the first quarter distribution and the $5,000 second quarter distribution.

b. $1,250

c. $2,500

d. $3,750

e. $5,000

22. A, B, and C form ABC Corporation by transferring the following: The above transaction qualifies A and B under 351 for nonrecognition of gain or loss.

a. True

b. False

c. Actually, A, B, C all qualify for nonrecognition of gain or loss under 351

23. There is a requirement that the transferors of stock in a reorganization collectively retain a continuing ownership (equity) interest in the target corporations assets or historic business to be taxdeferred. Guidance as to the percentage of equity the target shareholders, in the aggregate, receive to satisfy this doctrine is found in:

a. The Internal Revenue Code

b. A Treasure Regulation

c. Circular 230

d. The Congressional Record

I NEED ANSWER TO ALL THE 4