Multiple choice

10 - The Income and Expenses Statement of XYZ Corporation, prepared on a tax basis, presents the following results:

XYZ Corporation Statement of Income and Expenses (Tax Base) For the year ended December 31, 20X1 Income $1,500,000 Cost of sale (600,000) Gross margin 900,000 Dividend income 100,000 Gross income 1,000,000 Salaries (100,000) Other operating expenses (200,000) Net Income $700,000

Dividends are paid by a domestic corporation. Assume that the corporation has no other deductions that it can claim other than those that arise from the statement of income and expenses presented.

Determine the dividend deduction that XYZ Corporation may claim in taxable year 20X1.

a. $85,000 b. $100,000 c. $0 d. $595,000

What amount, if any, can the corporation claim as a deduction for net loss from operations in 20X2?

to. ($100,000) b. ($50,000) c. ($45,000) d. $0 11 - The Income and Expenses Statement of XYZ Corporation, prepared on a tax basis, presents the following results: XYZ CorporationStatement of Income and Expenses (Tax Base) For the year ended December 31, 20X1 Income $1,000,000 Cost of sale (600,000) Gross margin 400,000 Dividend income 100,000 Gross income 500,000 Salaries (150,000) Other operating expenses (300,000) Net Income $50,000

Dividends are paid by a domestic corporation. Assume that the corporation has no other deductions that it can claim other than those that arise from the statement of income and expenses presented.

Determine the dividend deduction that XYZ Corporation may claim in taxable year 20X1.

a. $100,000 b. $50,000 c. $42,500 d. $85,000

12) The Income and Expenses Statement of XYZ Corporation, prepared on a tax basis, presents the following results:

XYZ Corporation Statement of Income and Expenses (Tax Base) For the year ended December 31, 20X1 Income $1,500,000 Cost of sale (600,000) Gross margin 900,000 Dividend income 100,000 Gross income 1,000,000 Salaries (100,000) Other operating expenses (200,000) Donation (50,000) Net Income $650,000

Dividends are paid by a domestic corporation. The donation is to a non-profit entity. Assume that the corporation has no other deductions that it can claimother than those that arise from the statement of income and expenses presented.

Determine the net income subject to normal tax for the corporation in 20X1.

a - $553,500 b. $605,000 c. $550,000 d. $565,000

13 - Dividends are paid by a domestic corporation. The donation is to a non-profit entity.

Assume that the corporation has no other deductions that it can claim other than those that arise from the statements of income and expenses presented. What is the normal taxable net income for the corporation in 20X2?

a. $0 b. $4,500 c. $675 d. $36,500

14)The Income and Expenses Statement of XYZ Corporation, prepared on a tax basis, presents the following results:

XYZ Corporation Statement of Income and Expenses (Tax Base) For the year ended December 31, 20X1 Income $1,500,000 Cost of sale (600,000) Gross margin 900,000 Salaries (100,000) Other operating expenses (300,000) Net income subject to tax $500,000

Assume that the corporation has no other deductions that it can claim other than those that arise from the statement of income and expenses presented. What is the net income subject to surtax for the corporation in 20X1?

a. $500,000 b. $1,500,000 c. $25,000 d. $475,000 15 - XYZ Corporation's normal taxable net income for the 20X1 taxable year is $145,000. XYZ Corporation is not a controlled group. Determine the income tax for taxable year 20X1.

a. $48,575 b. $41,275 c. $26,825 d. $37,325

16) XYZ Corporation's net taxable income for the 20X1 taxable year is $260,000. XYZ Corporation is not a controlled group.

For taxable year 20X1, the entity made estimated tax payments for a total of $50,000. In addition, the corporation was notified, through forms 480.6A, that several of its clients withheld income tax in the amount of $25,000. Determine if the corporation will have a refund or income tax payable for taxable year 20X1. a. Contribution payable of $7,150. b. Contribution payable of $2,650. c. Refund of $26,900. d. Refund of $31,525.