Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

must be held for more than one year 4. Incentive stock options are an AMT adjustment 5. Personal property depreciated using straight-line depreciation is not

image text in transcribed
must be held for more than one year 4. Incentive stock options are an AMT adjustment 5. Personal property depreciated using straight-line depreciation is not subject to Section 1245 recapture 6, Charitable contributions are limited to 60% of for corporations. 7. Capital gains are taxed as "capital income for corporations. 8. Capital losses can only be offset by capital gains. 9 Federal income tas is tax deductible 10. Section 197 covers the tax issues regarding intangible assets, like goodwil II. A taxpayer's holding period is always measured from the day after the taxpayer acquires the property. 12. The "dividends received" deduction is to offset "triple-taxation 13. Section 1245 recapture does not apply to depreciable real property 14. Both C and S corporations recognize gain on the distribution of appreciated property and recognize a loss when it distributes property that has declined in value. 15. The "dividends received" deduction cannot create a "net operating loss" 16 A corporation that owns 80 % of the stock in another corporation is not taxed on the dividends it receives from the other corporation. 17. Corporations can use capital losses to offset ordinary income. 18. Book income and taxable income are normally the same. 19, C corporations cannot use the cash method ofaccounting if their average annual taxable income for the three previous tax years exceed S5 million. 20. C Corporations must pay estimated tax payments if the previous year's income tax was $500 or more. 21. The differences between book income and taxable income are reconciled in Schedule M-1. 22. Large corporations (assets> $10,000,000) must use a Schedule M-3 for the income differences. 23, C Corporations do not pay Alternative Minimum Tax. 24. Controlled groups must allocate tax attributes between them 25. C Corporation must file Form 1120 to report their taxes by April 15 Maltiple Choice (5 points each)-Answer on bubble sheet. 26. Differences between book and taxable income are caused by I. Differences in GGAP and Tax law III. Differences in accrual and cash method IV. Differences in the bookkeeper and CPA V. Difference in tax evasion methods VI. Differences in camel botox methods II. Differences in GAAP and Tax law b. I and IV. a. Il and V d. IlI and VI.e. Combination not listed 27. Differences between book and taxable income are: Il and II1. I. Favorable 11. Unfavorable III. Permanent IV. Temporary Il and IV None of these. b. e. and I1. All of these c. I. Il and IV d. 28. The lookback period for purposes of computing non-recaptured Section 123 a. 7 years. d. 5 years. b. e. 3 years indefinite c. 10 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy J Louwers, Robert J. Ramsay, David Sinason, Jerry R Strawser

1st Edition

0072954442, 9780072954449

More Books

Students also viewed these Accounting questions