Match the description of terms in the middle column with the terms on the far right column An item is deductible for tax in the current period but is not expensed for book purposes until some future period A Qualified Small Business Corporation Mitigates multiple taxations of corporate income B C Corporations The term applies when a corporation ceases to be a going concern The corporation continues solely to wind up affairs, pay debts, and distribute any remaining assets to shareholders C Stock Rights An individual is deemed to own stock owned by his or her spouse, children, grandchildren, and parents (not siblings or grandparents) D LLCs The rule that passive losses cannot be used to be offset against either active income or portfolio income applies to E Deferred Tax Asset A term used commonly associated with a corporation in financial difficulty Such activity may be tax free provided specific requirements are met F Qualify for Sale or Exchange Treatment What represents the taxes actually payable to (or refund receivable from) the governmental authorities for the current period G Related Party Loss Limitation If these are taxable, the recipient has income equal to their fair market value H Dividend Received Deduction These are separate taxable entities that compute their own taxable income and pay their own taxes I Deferred Tax Liability As a general rule, these are excluded from income if they are pro rata distributions of stock or stock rights paid on common stock J Reorganization Distribution in complete termination of a shareholders interest (complete termination redemption) K Stock Attribution Rule This entity allows a qualifying business to be treated as a partnership for tax purposes, thereby avoiding double taxation associated with C corporations L PSCs An expense is deductible for book purposes in the current period but is not deductible for tax until a future period M Current Tax Expense A C Corporation whose aggregate gross assets did not exceed $50 million on the date the stock was issues N Corporate Liquidation The distribution is not pro rata or the property distributed is disqualified property O Stock Dividends

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Posted on Jun 02, 2022

Match the description of terms in the middle column with the terms on the far right column An item is deductible for tax in the

Match the description of terms in the middle column with the terms on the far right column

	An item is deductible for tax in the current period but is not expensed for book purposes until some future period.	A. Qualified Small Business Corporation
	Mitigates multiple taxations of corporate income.	B. C Corporations
	The term applies when a corporation ceases to be a going concern. The corporation continues solely to wind up affairs, pay debts, and distribute any remaining assets to shareholders.	C. Stock Rights
	An individual is deemed to own stock owned by his or her spouse, children, grandchildren, and parents (not siblings or grandparents).	D. LLCs
	The rule that passive losses cannot be used to be offset against either active income or portfolio income applies to__	E. Deferred Tax Asset
	A term used commonly associated with a corporation in financial difficulty. Such activity may be tax-free provided specific requirements are met.	F. Qualify for Sale or Exchange Treatment
	What represents the taxes actually payable to (or refund receivable from) the governmental authorities for the current period.	G. Related-Party Loss Limitation
	If these are taxable, the recipient has income equal to their fair market value.	H. Dividend Received Deduction
	These are separate taxable entities that compute their own taxable income and pay their own taxes.	I. Deferred Tax Liability
	As a general rule, these are excluded from income if they are pro-rata distributions of stock or stock rights paid on common stock	J. Reorganization
	Distribution in complete termination of a shareholder’s interest (“complete termination redemption”).	K. Stock Attribution Rule
	This entity allows a qualifying business to be treated as a partnership for tax purposes, thereby avoiding double taxation associated with C corporations	L. PSCs
	An expense is deductible for book purposes in the current period but is not deductible for tax until a future period.	M. Current Tax Expense
	A-C Corporation whose aggregate gross assets did not exceed $50 million on the date the stock was issues	N. Corporate Liquidation
	The distribution is not pro-rata or the property distributed is disqualified property	O. Stock Dividends

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MY ANSWER I Deferred Tax Liability An item is deductible for tax in the current period but is not expensed for book purposes until some future period ... blur-text-image